Poconos Fraud Results in Criminal Charges

Indicted:
Donald Kishbaugh, 69, Blakeslee, Pennsylvania, owner of Eagle Valley Homes Inc., P&K Developers and Nations 1st Mortgage (offices in Marshalls Creek and Brodheadsville, Pennsylvania) (fraud, theft, conspiracy, participating in a corrupt organization, deception and forgery)
Steven P. Parisi, 42, Kunkletown, Pennsylvania, owner of Eagle Valley Homes Inc., P&K Developers and Nations 1st Mortgage (fraud, theft, conspiracy, participating in a corrupt organization, deception and forgery)
Kimberly Loffio, 32, Effort, Pennsylvania (fraud, theft and conspiracy)
Rose Perdue, 43, Kunkletown, Pennsylvania (fraud, theft and conspiracy)  
Lauren Erb, 45, Kunkletown, Pennsylvania (forgery and perjury)
Anita M. Peterson, 49, Stroudsburg, Pennsylvania, owner of Mountain Valley Abstract, Stroudsburg, Pennsylvania. (tampering with public records, fabricating evidence and conspiracy)
 
Scheme: 
 
Eagle Valley advertised loans for borrowers with bad credit or prior BKs and took minimal downpayments (as low as $1,000 on a $190K loan).  Loan documents included fraudulent downpayment verifications, employment verifications and income records were submitted in connection with loans in the Poconos. 

Parisi and Kishbaugh were cited by the attorney general’s office last August for unfair trade practices and violations of consumer protection laws.

In a surprising development, the grand jury did not issue an indictment against Gene Percudani, treated in the civil cases as the ringleader of the scheme.  According to the attorney general, the grand jury did not find sufficient evidence of criminal conduct.