Steve Middleton Testimony - Coverage Provided by Anne Mitchell

The Government continued in its cross examination of Steve Middleton. He was shown several HUD-1 statements involving sales of homes located in Overland Park, KS, and Olathe, KS. The HUD statements each allegedly showed line items of payments to (James) Moser & Associates, LLC's controlled by Todd Earnshaw, and payments for Linda Sweeten, Todd Earnshaw's wife. The HUD entries indicate that Moser & Associates provided decoration consultation services and supervisory services. The government questioned Middleton whether any of these line items were legitimate payments to which he replied, ‘no'. Middleton further testified that oftentimes he paid kickbacks after closing to Moser without the knowledge of the lender:

Middleton testified that he paid a referral fee, which was the difference between the construction loan and what the house appraised.

During cross-examination by James Moser's attorney:

Question: Well, didn't Mr. Moser pick out colors and tile and appliances?

Answer: Moser would fax directly to the title company to be included in and paid from loan proceeds.

Question: The word kickback has been used today and that suggests something secret going on. But all the payments-the expenses..they weren't secret, were they?

Answer: It wasn't a secret between us.

Redirect by AUSA Attorney Hathaway: 

Question: Are you aware of the term ‘façade', being used in the construction industry?

Answer: Yes.

Question: It means fake front, doesn't it?

New Witness: Tony Hilger

Tony Hilger is called as a witness for the Government. Mr. Hilger currently resides in Dallas, TX, but lived in Olathe, KS, in 2002. He is shown a lease agreement between Joe Frey as the landlord and Tony Hilger as the tenant.

Question: Did you enter into a lease agreement with Joe Frey?

Answer: No.

Question: Did you rent a house at 79xx W. 155th Terrace in Overland Park, Kansas, for $2500 from Joe Frey?

Answer: No

Question: None of these lease agreements bear your signature?

Answer: That's not my signature.

Question: Have you ever seen these documents before today?

Answer: ‘No'

Next Witness: Angela Parenza, Miller's Office Manager