INDICTMENT. THEFT, (1),(2)(d) C.R.S. (F3) <0801V> 1, 3, 7, 9 (4 counts) THEFT, (1),(2)(c) C.R.S. (F4) <0801U> 5, 11, 13, 15 (4 counts)

Transcription

1 District Court, City and County of Denver, Colorado City and County Building, Room Bannock Street Denver, CO Plaintiff: THE PEOPLE OF THE STATE OF COLORADO Defendant: HAROLD JOE HICKS COURT USE ONLY Case Number: Grand Jury No. 08CR2A Div.: Criminal Ctrm: 1 / INDICTMENT THEFT, (1),(2)(d) C.R.S. (F3) <0801V> 1, 3, 7, 9 (4 counts) THEFT, (1),(2)(c) C.R.S. (F4) <0801U> 5, 11, 13, 15 (4 counts) FORGERY, (1)(c) C.R.S. (F5) <1001C> 2, 4, 6, 8, 10, 12, 14, 16 (8 counts) The Grand Jury presents the within Indictment and the same is ordered filed. Dated this day of, Christina M. Habas Presiding Judge 2008 Denver County Statutory Grand Jury

2 INDICTMENT STATE OF COLORADO ) ) COUNTY OF DENVER ) Of the term of the District Court in the year 2008, the Grand Jurors chosen, selected and sworn in and for the County of Denver, in the name and by the authority of the People of the State of Colorado, upon their oaths, present their indictment of HAROLD JOE HICKS, for the following described acts, committed, or triable, in the County of Denver, all done contrary to the form of the statutes in such case made and provided, and against the peace and dignity of the People of the State of Colorado, as stated in the counts attached hereto. Dated this day of, AS TO COUNT ONE: (theft) AS TO COUNT TWO: (forgery) AS TO COUNT THREE: (theft) AS TO COUNT FOUR: (forgery) AS TO COUNT FIVE: (theft) AS TO COUNT SIX: (forgery) AS TO COUNT SEVEN: (theft) AS TO COUNT EIGHT: (forgery)

3 AS TO COUNT NINE: (theft) AS TO COUNT TEN: (forgery) AS TO COUNT ELEVEN: (theft) AS TO COUNT TWELVE: (forgery) AS TO COUNT THIRTEEN: (theft) AS TO COUNT FOURTEEN: (forgery) AS TO COUNT FIFTEEN: (theft) AS TO COUNT SIXTEEN: (forgery) MITCHELL R. MORRISSEY District Attorney By: Kandace C. Gerdes, Reg.No Denver District Attorney s Office 201 W. Colfax Ave., Dept. 801 Denver, CO

4 COUNT ONE THEFT, (1),(2)(d) C.R.S. (F3) <0801V> Between and including May 7, 2004 and December 17, 2008, in the City and County of Denver, State of Colorado HAROLD JOE HICKS unlawfully, feloniously, and knowingly obtained or exercised control over a thing of value, namely: MONEY of COUNTRYWIDE HOME LOANS,, with the value of twenty thousand dollars or more, without authorization, or by threat or deception, and intended to deprive COUNTRYWIDE HOME LOANS, permanently of its use or benefit, and knowingly used, concealed, or abandoned the thing of value in such manner as to permanently deprive COUNTRYWIDE HOME LOANS, of its use or benefit; in violation of section (1)(a)(b),(2)(d), C.R.S. COUNT TWO FORGERY, (1)(c) C.R.S. (F5) <1001C> Between and including May 7, 2004 and December 17, 2008, in the City and County of Denver, State of Colorado HAROLD JOE HICKS, with the intent to defraud COUNTRYWIDE HOME LOANS and RICHARD MARTIN, unlawfully, feloniously, and falsely made, completed, altered, or uttered a written instrument which was or which purported to be, or which was calculated to become or to represent if completed, a deed, will, codicil, contract, assignment, commercial instrument, promissory note, or other instrument, which document did or may have evidenced, created, transferred, terminated, or otherwise affected a legal right, interest, obligation, or status, namely: MORTGAGE LOAN APPLICATION; in violation of section (1)(c), C.R.S. COUNT THREE THEFT, (1),(2)(d) C.R.S. (F3) <0801V> Between and including July 15, 2004 and December 17, 2008, in the City and County of Denver, State of Colorado HAROLD JOE HICKS unlawfully, feloniously, and knowingly obtained or exercised control over a thing of value, namely: MONEY of FIELDSTONE MORTGAGE CO., with the value of twenty thousand dollars or more, without authorization, or by threat or deception, and intended to deprive FIELDSTONE MORTGAGE CO., permanently of its use or benefit, and knowingly used, concealed, or abandoned the thing of value in such manner as to permanently deprive FIELDSTONE MORTGAGE CO., of its use or benefit; in violation of section (1)(a)(b),(2)(d), C.R.S. COUNT FOUR FORGERY, (1)(c) C.R.S. (F5) <1001C> Between and including July 15, 2004 and December 17, 2008, in the City and County of Denver, State of Colorado HAROLD JOE HICKS, with the intent to defraud FIELDSTONE MORTGAGE CO. and RICHARD MARTIN, unlawfully, feloniously, and falsely made, completed, altered, or uttered a written instrument which was or which purported to be, or which was calculated to become or to represent if completed, a deed, will, codicil, contract, assignment, commercial instrument, promissory note, or other instrument, which document did or may have 4

5 evidenced, created, transferred, terminated, or otherwise affected a legal right, interest, obligation, or status, namely: MORTGAGE LOAN APPLICATION; in violation of section (1)(c), C.R.S. COUNT FIVE THEFT, (1),(2)(c) C.R.S. (F4) <0801U> Between and including March 23, 2005 and December 17, 2008, in the City and County of Denver, State of Colorado HAROLD JOE HICKS, unlawfully, feloniously, and knowingly obtained or exercised control over a thing of value, namely: MONEY of BNC MORTGAGE, INC., with the value of one thousand dollars or more but less than twenty thousand dollars, without authorization, or by threat or deception, and intended to deprive BNC MORTGAGE, INC., permanently of its use or benefit, and knowingly used, concealed, or abandoned the thing of value in such manner as to permanently deprive BNC MORTGAGE, INC., of its use or benefit; in violation of section (1)(a)(b),(2)(c), C.R.S. COUNT SIX FORGERY, (1)(c) C.R.S. (F5) <1001C> Between and including March 23, 2005 and December 17, 2008, in the City and County of Denver, State of Colorado HAROLD JOE HICKS, with the intent to defraud BNC MORTGAGE, INC. and RICHARD MARTIN, unlawfully, feloniously, and falsely made, completed, altered, or uttered a written instrument which was or which purported to be, or which was calculated to become or to represent if completed, a deed, will, codicil, contract, assignment, commercial instrument, promissory note, or other instrument, which document did or may have evidenced, created, transferred, terminated, or otherwise affected a legal right, interest, obligation, or status, namely: MORTGAGE LOAN APPLICATION; in violation of section (1)(c), C.R.S. The facts supporting Counts 1 through 6 are as follows: 1. All facts in support of all other counts are incorporated herein by reference. 2. At all times Harold Joe Hicks ( Harold Hicks ) was the pastor of Mt. Carmel Baptist Church, located at 2575 Vine St., in the City and County of Denver, State of Colorado. 3. At all times relevant to this Indictment, Harold Hicks had his primary residence at 1626 S. Nile Court, Aurora, CO This address was also listed as the address of Harold Hicks son, Tracy D. Hicks a/k/a TD Hicks ( Tracy Hicks ). 4. At all times relevant to this Indictment, Omega Development Group, Inc. ( Omega ), was an entity registered in the State of Colorado. The Chief Executive Officer of Omega was Harold Hicks. The Treasurer was T.D. Hicks. 5. At all times relevant to this Indictment, Concord Investment Group, LLC ( Concord ), was an entity registered in the State of Colorado. The manager of 5

6 Concord was Tracy D. Hicks ( Tracy Hicks ), Hicks son. 6. In 2004, Richard Martin ( Martin ) attended Mt. Carmel Baptist Church. 7. In 2004, Martin was approached by Harold Hicks about an opportunity to buy real estate as rental property investments. Tracy Hicks was also present. 8. Harold Hicks told Martin that the investment required no actual monetary investment on his part; rather Martin need only put up his credit, which was good. Martin asked Harold Hicks why he was needed, Harold Hicks explained that he (Hicks) had the money and Martin had the credit. Harold Hicks also told Martin that there was nothing illegal, about a surrogate buyer purchasing real property. 9. Harold Hicks arrangement with Martin was that Martin would receive a fee after each closing where Martin bought property. The fee would be determined by Harold Hicks. In addition, Harold Hicks assured Martin that for each property Martin purchased, Harold Hicks would pay the mortgages, property taxes, insurance and any other expenses. 10. Harold Hicks presented Martin with all of the paperwork, which was already completed when Martin was asked to sign. The paperwork presented by Harold Hicks to Martin for his signature included several Forms 1003, Uniform Residential Loan Application ( Form 1003 ) in the name of Martin as the borrower on the property. The Form 1003 requires, among other things, Martin s income, marital status and reason for purchase of the property. 11. A Form 1003 is submitted to a lender to assess the lender's risk on a loan. The lender uses the information related to marital status, income, assets, liquidity of assets, and intended use of the property to assess its risk and interest rate to the borrower. A lender will lend money based upon the information submitted. Therefore, when the lender does not receive accurate information, it will lend money based upon the fraudulent information. 12. The Forms 1003 submitted in Martin's name contained false information, such as the incorrect marital status, an inflated list of assets, and/or the use of the property as a personal residence versus as an investment property. As a result, Martin s qualifications for the loan appeared better than they were and the lender provided a loan to Martin at a lower interest rate. 13. On the Forms 1003 dated May 7, 2004, July 15, 2004, and March 23, 2005, Martin s monthly salary, marital status, and assets were inaccurately reflected. In particular, at times. the Forms 1003 incorrectly stated Martin s marital status, an overstatement of assets, and/or a representation that Martin was buying the properties as his primary residence, rather than as investments. 14. The funds used as down payments were put into Martin s bank account by Harold 6

7 Hicks. 15. At all times relevant to the indictment, Richard Martin was married. 16. At no time did Martin live in any of the properties, nor did he ever intend to occupy any of them when he agreed to purchase them in his name. 17. Harold Hicks told Martin where and when the closings were to take place. Harold Hicks also accompanied Martin to the closings. Martin purchased some of the properties without ever having seen them. 18. In total, Martin bought seven properties. The fee he received on the first closing was $2,000. The second fee was $1,500. Thereafter the fee amounts decreased. The total amount Martin received from Harold Hicks in fees was less than $10, On May 7, 2004, Martin purchased 3046 High Street, which is located in the City and County of Denver, State of Colorado. The seller of the property was Concord. The purchase price was $135,000, with a $108,000 mortgage from Countrywide Home Loans (Countrywide). There is also a carry-back mortgage from Martin to Concord for $20, Harold Hicks had all of the paperwork, i.e., deed of trust and Form 1003, completed when he met with Martin. Martin signed the documents presented to him by Harold Hicks without reading them. 21. A completed Form 1003 was presented by Harold Hicks to Martin for his signature, to obtain a loan for the purchase of 3046 High Street. It reflected the purchase was as a primary residence. Martin neither intended to, nor did, occupy the property. 22. On or about May 7, 2004, Tracy Hicks signed the warranty deed as the manager of Concord. The closing of 3046 High Street took place on or about May 7, 2004, at which time Concord was paid proceeds of $21, Martin was able to obtain a favorable interest rate on his loan through Countrywide as a result of the fraudulent Form As per the agreement with Harold Hicks, Martin, acting as the surrogate buyer, passed along this lower interest rate to Harold Hicks. As a result of the fraudulent Form 1003, Countrywide lost $20,000 or more, because it loaned funds at a lower interest rate than it would have, had the true financial picture and loan qualifications of Martin been known. 24. Between May 7, 2004, and February 13, 2007, Martin did nothing with respect to the property. Martin was told by Harold Hicks that Harold Hicks would handle all such matters. 25. On February 13, 2007, 3046 High St. went into foreclosure. Martin was still the owner of record of the property at the time it went into foreclosure. 7

8 26. On July 15, 2004, Martin purchased 3036 High St., located in the City and County of Denver, State of Colorado. The seller was Concord at a purchase price of $135,000. The first mortgage was $108,000, from Fieldstone Mortgage Co. There was also a $20,250 carry-back mortgage from Martin to Concord. Martin signed all of the completed paperwork Harold Hicks presented to him. 27. A completed Form 1003 was presented by Harold Hicks to Martin for his signature, to obtain a loan for the purchase of 3036 High Street. It reflected that the purchase was as a primary residence. Martin did not intend to, nor did he, occupy the property. The Form 1003 also states that Martin is unmarried, when in fact he was married. The asset amounts reflected on the Form 1003 were also inaccurate. 28. On or about July 15, 2004, 3036 High Street closed and Tracy Hicks signed the warranty deed as the manager of Concord. Concord was paid sale proceeds of $26, Martin was able to obtain a favorable interest rate on his loan through Firestone as a result of the fraudulent Form As per the agreement with Harold Hicks, Martin, acting as the surrogate buyer, passed along this lower interest rate to Harold Hicks. As a result of the fraudulent Form 1003, Firestone lost $20,000 or more, because it loaned funds at a lower interest rate than it would have, had the true financial picture and loan qualifications of Martin been known. 30. Between July 15, 2004 and February 15, 2007, Martin did nothing with respect to the property. Martin was told by Harold Hicks that Harold Hicks would handle all such matters High St was foreclosed on February 15, On March 23, 2005, Martin purchased 3760 Gilpin Street, which is located in the City and County of Denver, State of Colorado. The seller was Deborah Richardson ( Richardson ), with a purchase price of $107,500. Martin s first mortgage was $96,750, from BNC Mortgage Inc. Martin also had a $10,750 carry-back mortgage from Richardson. Harold Hicks signed the warranty deed as attorney-in-fact for Richardson. 33. During times relevant to the indictment, Deborah Richardson was a member of Mr. Carmel Baptist Church. In 1997, Harold Hicks approached Richardson about investing in real estate, offering her an opportunity to invest in real estate where she would receive a fee at closing and Harold Hicks would take care of the mortgage payments, collect rent, and pay all taxes and expenses relative to the properties she purchased. 34. Richardson purchased 3760 Gilpin Street as well are other properties at Harold Hicks behest. 8

9 35. A completed Form 1003 was presented by Harold Hicks to Martin for his signature to obtain a loan for the purchase of 3760 Gilpin Street. It reflected that Martin had a monthly income of $8,800. In fact, Martin s monthly income was approximately $3, On or about March 23, 2005, the closing on 3760 Gilpin was held. At that time, sale proceeds of $10, were paid to Harold Hicks, not the owner of record, Richardson. 37. The recorded warranty deed and power of attorney were mailed to Harold Hicks at his residence at 1626 South Nile Court, Aurora, CO Martin was able to obtain a favorable interest rate on his loan through BNC Mortgage as a result of the fraudulent Form As per the agreement with Harold Hicks, Martin, acting as the surrogate buyer, passed along this lower interest rate to Harold Hicks. As a result of the fraudulent Form 1003, BNC Mortgage lost $20,000 or more, because it loaned funds at a lower interest rate than it would have, had the true financial picture and loan qualifications of Martin been known. 39. Between March 23, 2005 and March 23, 2007, Martin did nothing with respect to the property. Martin was told by Harold Hicks that Harold Hicks would handle all such matters. 40. On or about March 23, 2007, 3760 Gilpin Street went to foreclosure. 41. When Martin started to receive foreclosure notices from the lenders of the properties that were titled in his name, Martin gave the notices to Harold Hicks. Hicks told Martin that he, Harold Hicks, would take care of it. 42. After continuing to receive the foreclosure notices, Martin confronted Harold Hicks. Harold Hicks told Martin to be patient because he, Harold Hicks was trying to sell the properties but having difficulty because of the real estate market. Martin relied upon Harold Hicks representations that he would take care of everything and that Martin would not have any adverse consequences. 43. Each of the properties in Martin s name that were purchased through Harold Hicks was lost to foreclosure. 44. For each property, fraudulently completed loan documents were presented by Harold Hicks to Martin. Not knowing the documents were fraudulent, Martin was asked to, and signed, each of the loan documents. The documents were then uttered to lenders for the purpose of obtaining a loan based upon fraudulent borrower (Martin s) information. As a result of the fraudulent documents, the lenders sustained losses because they loaned money to Martin at a lower interest rate. 9

10 45. Martin s credit rating has suffered as a result of all the properties he purchased being reflected as foreclosed. 10

11 COUNT SEVEN THEFT, (1),(2)(d) C.R.S. (F3) <0801V> Between and including July 30, 2004 and December 17, 2008, in the City and County of Denver, State of Colorado HAROLD JOE HICKS, unlawfully, feloniously, and knowingly obtained or exercised control over a thing of value, namely: MONEY of COUNTRYWIDE HOME LOANS, INC., with the value of twenty thousand dollars or more, without authorization, or by threat or deception, and intended to deprive COUNTRYWIDE HOME LOANS, INC., permanently of its use or benefit, and knowingly used, concealed, or abandoned the thing of value in such manner as to permanently deprive COUNTRYWIDE HOME LOANS, INC., of its use or benefit; in violation of section (1)(a)(b),(2)(d), C.R.S. COUNT EIGHT FORGERY, (1)(c) C.R.S. (F5) <1001C> Between and including July 30, 2004 and December 17, 2008, in the City and County of Denver, State of Colorado HAROLD JOE HICKS, with the intent to defraud COUNTRYWIDE HOME LOANS, INC. and SHERRI WRIGHTSIL, unlawfully, feloniously, and falsely made, completed, altered, or uttered a written instrument which was or which purported to be, or which was calculated to become or to represent if completed, a deed, will, codicil, contract, assignment, commercial instrument, promissory note, or other instrument, which document did or may have evidenced, created, transferred, terminated, or otherwise affected a legal right, interest, obligation, or status, namely: MORTGAGE LOAN APPLICATION; in violation of section (1)(c), C.R.S. COUNT NINE THEFT, (1),(2)(d) C.R.S. (F3) <0801V> Between and including August 6, 2004 and December 17, 2008, in the City and County of Denver, State of Colorado HAROLD JOE HICKS unlawfully, feloniously, and knowingly obtained or exercised control over a thing of value, namely: MONEY of COUNTRYWIDE HOME LOANS, INC., with the value of twenty thousand dollars or more, without authorization, or by threat or deception, and intended to deprive COUNTRYWIDE HOME LOANS, INC., permanently of its use or benefit, and knowingly used, concealed, or abandoned the thing of value in such manner as to permanently deprive COUNTRYWIDE HOME LOANS, INC., of its use or benefit; in violation of section (1)(a)(b),(2)(d), C.R.S. COUNT TEN FORGERY, (1)(c) C.R.S. (F5) <1001C> Between and including August 6, 2004 and December 17, 2008, in the City and County of Denver, State of Colorado HAROLD JOE HICKS, with the intent to defraud COUNTRYWIDE HOME LOANS, INC. and SHERRI WRIGHTSIL, unlawfully, feloniously, and falsely made, completed, altered, or uttered a written instrument which was or which purported to be, or which was calculated to become or to represent if completed, a deed, will, codicil, contract, assignment, commercial instrument, promissory note, or other instrument, which document did or may have evidenced, created, transferred, terminated, or otherwise 11

12 affected a legal right, interest, obligation, or status, namely: MORTGAGE LOAN APPLICATION; in violation of section (1)(c), C.R.S. COUNT ELEVEN THEFT, (1),(2)(c) C.R.S. (F4) <0801U> Between and including January 31, 2005 and December 17, 2008, in the City and County of Denver, State of Colorado HAROLD JOE HICKS, unlawfully, feloniously, and knowingly obtained or exercised control over a thing of value, namely: MONEY of BNC MORTGAGE, INC., with the value of one thousand dollars or more but less than twenty thousand dollars, without authorization, or by threat or deception, and intended to deprive BNC MORTGAGE, INC., permanently of its use or benefit, and knowingly used, concealed, or abandoned the thing of value in such manner as to permanently deprive BNC MORTGAGE, INC., of its use or benefit; in violation of section (1)(a)(b),(2)(c), C.R.S. COUNT TWELVE FORGERY, (1)(c) C.R.S. (F5) <1001C> Between and including January 31, 2005 and December 17, 2008, in the City and County of Denver, State of Colorado HAROLD JOE HICKS, with the intent to defraud BNC MORTGAGE, INC. and SHERRI WRIGHTSIL, unlawfully, feloniously, and falsely made, completed, altered, or uttered a written instrument which was or which purported to be, or which was calculated to become or to represent if completed, a deed, will, codicil, contract, assignment, commercial instrument, promissory note, or other instrument, which document did or may have evidenced, created, transferred, terminated, or otherwise affected a legal right, interest, obligation, or status, namely: MORTGAGE LOAN APPLICATION; in violation of section (1)(c), C.R.S. COUNT THIRTEEN THEFT, (1),(2)(c) C.R.S. (F4) <0801U> Between and including February 11, 2005 and December 17, 2008, in the City and County of Denver, State of Colorado HAROLD JOE HICKS unlawfully, feloniously, and knowingly obtained or exercised control over a thing of value, namely: MONEY of FIELDSTONE MORTGAGE CO., with the value of one thousand dollars or more but less than twenty thousand dollars, without authorization, or by threat or deception, and intended to deprive FIELDSTONE MORTGAGE CO., permanently of its use or benefit, and knowingly used, concealed, or abandoned the thing of value in such manner as to permanently deprive FIELDSTONE MORTGAGE CO., of its use or benefit; in violation of section (1)(a)(b),(2)(c), C.R.S. COUNT FOURTEEN FORGERY, (1)(c) C.R.S. (F5) <1001C> Between and including February 11, 2005 and December 17, 2008, in the City and County of Denver, State of Colorado HAROLD JOE HICKS, with the intent to defraud FIELDSTONE 12

13 MORTGAGE CO. and SHERRI WRIGHTSIL, unlawfully, feloniously, and falsely made, completed, altered, or uttered a written instrument which was or which purported to be, or which was calculated to become or to represent if completed, a deed, will, codicil, contract, assignment, commercial instrument, promissory note, or other instrument, which document did or may have evidenced, created, transferred, terminated, or otherwise affected a legal right, interest, obligation, or status, namely: MORTGAGE LOAN APPLICATION; in violation of section (1)(c), C.R.S. COUNT FIFTEEN THEFT, (1),(2)(c) C.R.S. (F4) <0801U> Between and including February 28, 2005 and December 17, 2008, in the City and County of Denver, State of Colorado HAROLD JOE HICKS unlawfully, feloniously, and knowingly obtained or exercised control over a thing of value, namely: MONEY of BNC MORTGAGE, INC., with the value of one thousand dollars or more but less than twenty thousand dollars, without authorization, or by threat or deception, and intended to deprive BNC MORTGAGE, INC., permanently of its use or benefit, and knowingly used, concealed, or abandoned the thing of value in such manner as to permanently deprive BNC MORTGAGE, INC., of its use or benefit; in violation of section (1)(a)(b),(2)(c), C.R.S. COUNT SIXTEEN FORGERY, (1)(c) C.R.S. (F5) <1001C> Between and including February 28, 2005 and December 17, 2008, in the City and County of Denver, State of Colorado HAROLD JOE HICKS, with the intent to defraud BNC MORTGAGE, INC. and SHERRI WRIGHTSIL, unlawfully, feloniously, and falsely made, completed, altered, or uttered a written instrument which was or which purported to be, or which was calculated to become or to represent if completed, a deed, will, codicil, contract, assignment, commercial instrument, promissory note, or other instrument, which document did or may have evidenced, created, transferred, terminated, or otherwise affected a legal right, interest, obligation, or status, namely: MORTGAGE LOAN APPLICATION; in violation of section (1)(c), C.R.S. The facts supporting Counts 7 through 16 are as follows: 1. All facts in support of all other counts are incorporated herein by reference. 2. During times relevant to this Indictment, Sherri Wrightsil ( Wrightsil ) was a member of Mt. Carmel Baptist Church. 3. At all times relevant to this Indictment, Wrightsil was employed as a customer service representative for Denver Water or unemployed. 4. In the later part of 2004, Wrightsil attended a real estate investment seminar that Harold Hicks put on at Mt. Carmel. 13

14 5. After the seminar, Harold Hicks and Tracy Hicks approached Wrightsil and asked if she was interested in real estate investments. When she indicated that she was, they said they had a proposal for her and arranged for a follow-up meeting. 6. A few days later, Wrightsil met with Harold Hicks in his office at Mt. Carmel Baptist Church. Harold Hicks told Wrightsil that he wanted her to use her credit, to be what he called a surrogate buyer to buy property. Hicks assured Wrightsil that there was nothing illegal, and that investors used surrogate buyers all the time. 7. When Wrightsil asked Harold Hicks why he needed her credit, he said that while he had the money to invest, he lacked sufficient credit. He said that he had seen her credit rating at the seminar, and that it was higher than Hicks explained to Wrightsil that he would complete all the paperwork (i.e., Forms 1003) and after Wrightsil purchased the property, he would rent out the property and pay the mortgage and all other costs associated with the property. Harold Hicks represented that after a period of time, he would take the property and the obligation out of Wrightsil s name. In exchange, Harold Hicks explained that Wrightsil would benefit by learning the real estate business and he would pay her a fee for the use of her name and credit. Wrightsil agreed based upon her trust of Harold Hicks and her having seen him go into his own pocket to help others. Wrightsil did not obtain anything in writing to reflect the agreement. 9. The Forms 1003 submitted in Wrightsil's name contained false information, such as employment, an inflated list of assets, and/or the use of the property as a personal residence versus as an investment property. As a result, Wrightsil s qualifications for the loan appeared better than they were and the lender provided a loan to Wrightsil at a lower interest rate. 10. On July 30, 2004, Wrightsil purchased 3034 High Street, which is located in the City and County of Denver, State of Colorado. The seller was Concord and the purchase price was $135,000. Wrightsil obtained a $128,250 mortgage from Countrywide Home Loans. 11. Harold Hicks had all of the paperwork, i.e., deed of trust and Form 1003 completed when he met with Wrightsil. Wrightsil signed the documents presented to her by Harold Hicks without reading them. 12. A completed Form 1003 was presented by Harold Hicks to Wrightsil for the purchase of 3034 High Street stated that the purchase was for Wrightsil s primary residence, although at no time did she intend to, nor did she, occupy the property. The Form 1003 also overstated Wrightsil s assets. Additionally, the HUD-1 Settlement Sheet indicated a payment from Wrightsil of $5,750, when, in fact she did not put any of her own money into the property as a down payment. 13. At closing, Concord received $49, in sale proceeds and Wrightsil was paid a $2,000 fee for the purchase. Tracy Hicks, as manager of Concord, signed the warranty 14

15 deed to Wrightsil. 14. Wrightsil was able to obtain a favorable interest rate on her loan through Countrywide Home Loans as a result of the fraudulent Form As per the agreement with Harold Hicks, Wrightsil, acting as the surrogate buyer, passed along this lower interest rate to Harold Hicks. As a result of the fraudulent Form 1003, Countrywide lost $20,000 or more, because it loaned funds at a lower interest rate than it would have, had the true financial picture and loan qualifications of Wrightsil been known. 15. On August 6, 2004, Wrightsil purchased 3042 High St. which is located in the City and County of Denver, State of Colorado. The purchase price was $135,000 and the seller was Concord. Wrightsil obtained a first mortgage from Countrywide in the amount of $128, A completed Form 1003 was presented by Harold Hicks to Wrightsil for signing to obtain a loan for the purchase of 3042 High Street. It reflected the purchase was as a primary residence. Wrightsil did not intend to, nor did she, occupy the property. 17. Wrightsil was able to obtain a favorable interest rate on her loan through Countrywide as a result of the fraudulent Form As per the agreement with Harold Hicks, Wrightsil, acting as the surrogate buyer, passed along this lower interest rate to Harold Hicks. As a result of the fraudulent Form 1003, Countrywide lost $20,000 or more, because it loaned funds at a lower interest rate than it would have, had the true financial picture and loan qualifications of Wrightsil been known. 18. At closing, Concord received $49, in sale proceeds and Harold Hicks paid Wrightsil $1,500 for this transaction. Tracy Hicks, as manager of Concord, signed the warranty deed to Wrightsil. 19. Between August 6, 2004 and February 23, 2007, Wrightsil did nothing with respect to the property. Wrightsil was told by Harold Hicks that Harold Hicks would handle all such matters. 20. On or about February 23, 2007, 3042 High Street went into foreclosure. 21. On January 31, 2005, Wrightsil purchased 3742 Williams Street, in the City and County of Denver, State of Colorado from Kevin Price ( Price ). The purchase price was $105,000. Wrightsil obtained a mortgage from BNC Mortgage, Inc. in the amount of $89,250 with a carry-back mortgage from Price for $10,500. Harold Hicks signed at the closing as attorney-in-fact for Price. 22. A completed Form 1003 was presented by Harold Hicks to Wrightsil for her signature to obtain a loan on 3742 Williams Street. It showed that Wrightsil was employed at Omega at a monthly salary of $4,500. It also showed that Wrightsil had $388,000 in real estate assets. 23. At no time was Wrightsil employed by Omega, nor did she have real estate assets of 15

16 $388, Wrightsil was able to obtain a favorable interest rate on her loan through BNC Mortgage as a result of the fraudulent Form As per the agreement with Harold Hicks, Wrightsil, acting as the surrogate buyer, passed along this lower interest rate to Harold Hicks. As a result of the fraudulent Form 1003, BNC Mortgage lost $1,000 or more but less than $20,000, because it loaned funds at a lower interest rate than it would have, had the true financial picture and loan qualifications of Wrightsil been known. 25. The power of attorney signed by Price and Harold Hicks was returned to Hicks office, which was located at 300 South Jackson Street, in the City and County of Denver, State of Colorado. Sales proceeds of $19, were paid to Harold Hicks at closing. 26. On February 11, 2005, Wrightsil purchased 3740 Williams Street, located in the City and County of Denver, State of Colorado, from Price for $105,000. Wrightsil obtained two mortgages from Fieldstone Mortgage Co.: the first $74,500 and the second for $20, A completed Form 1003 was given to Wrightsil by Harold Hicks for the purchase of 3740 Williams Street. Wrightsil signed the papers provided to her by Harold Hicks. The Form 1003 showed that Wrightsil was employed at Omega at a monthly salary of $4,650. It also showed $445,000 in real estate assets, plus rental income of $2,625 per month. 28. At no time was Wrightsil employed by Omega, nor did she have real estate assets or rental income as reflected on the Form Wrightsil was able to obtain a favorable interest rate on her loan through Fieldstone Mortgage Co. as a result of the fraudulent Form As per the agreement with Harold Hicks, Wrightsil, acting as the surrogate buyer, passed along this lower interest rate to Harold Hicks. As a result of the fraudulent Form 1003, Fieldstone Mortgage Co. lost $1,000 or more but less than $20,000, because it loaned funds at a lower interest rate than it would have, had the true financial picture and loan qualifications of Wrightsil been known. 30. At closing, Harold Hicks signed at the closing as attorney-in-fact for Price. The proceeds check in the amount of $33, was issued to Price. The check was voided and a check in that same amount issued to Harold Hicks. 31. The power of attorney signed by Price was returned to Hicks office at 300 S. Jackson St., Denver, CO On February 28, 2005, Wrightsil purchased 3762 Gilpin Street, located in the City and County of Denver, State of Colorado from Richardson. The purchase price was $107,500. Wrightsil obtained a mortgage from BNC Mortgage, Inc. for $96,750. There is also a carry back from Richardson $10,

17 33. A completed Form 1003 was signed by Wrightsil for the purchase of 3762 Gilpin Street, as presented to her by Harold Hicks. It reflected that Wrightsil was employed at Omega at a monthly salary of $4,650. It also showed $589,300 in real estate assets. 34. At no time was Wrightsil employed by Omega, nor did she have real estate assets, as reflected on the Form Wrightsil was able to obtain a favorable interest rate on her loan through BNC Mortgage as a result of the fraudulent Form As per the agreement with Harold Hicks, Wrightsil, acting as the surrogate buyer, passed along this lower interest rate to Harold Hicks. As a result of the fraudulent Form 1003, BNC Mortgage lost $1,000 or more but less than $20,000, because it loaned funds at a lower interest rate than it would have, had the true financial picture and loan qualifications of Wrightsil been known. 36. Harold Hicks signed the closing documents as attorney in fact for Richardson. The sales proceeds of $15, were paid to Harold Hicks, not to Richardson. The power of attorney signed by Richardson was returned to Hicks residence at 1629 S. Nile Court, Aurora, Colorado. 37. Wrightsil received a fee for each time she purchased a property, but, the amount decreased with each deal. The most Wrightsil received for a purchase was $5,000. She used the money for living expenses. 38. In mid-2005, a couple months after she purchased the last property, Wrightsil typed up an agreement that stated that she had agreed to allow Hicks to use her as a surrogate buyer for one year, after which time Hicks would buy the properties back from her. It also outlined what Wrightsil would be paid for each transaction. 39. When Wrightsil took the written agreement to Mt. Carmel and met Harold Hicks in his office, he put her off, saying he needed time to look at it. Harold Hicks said he would get back to her, but never did sign the agreement. 40. Throughout 2005 and 2006, Wrightsil told Harold Hicks that she wanted her name removed from the deeds and mortgages. Harold Hicks insisted that they had an agreement and that he was paying the mortgages per the agreement. Harold Hicks transferred money into Wrightsil s bank account and she paid the mortgages via telephone payment. 41. Harold Hicks continued making the mortgage transfers until about October Around that time, Wrightsil began getting late payment notices from the mortgage companies. When she told Harold Hicks, he called Wrightsil into his office and said that he was having financial problems and Wrightsil s credit was going to probably take a 30- or 40-day hit. 42. Harold Hicks told Wrightsil he would correct the problem. Harold Hicks explained that he was going to pay the mortgages 30 or 40 days late, which would adversely affect 17

18 Wrightsil s credit. Wrightsil told Hicks that this was not the agreement and she wanted her name off all the properties, because their agreement was that the properties would be out of her name in a year. 43. By January 1, 2007, all the properties Wrightsil had purchased had gone into foreclosure. 44. On January 1, 2007, Wrightsil again talked to Harold Hicks. Hicks explained that because he had other people to take care of, he was not going to do anything else with Wrightsil s properties. 45. For each property, fraudulently completed loan documents were presented by Harold Hicks to Wrightsil. Not knowing the documents were fraudulent, Wrightsil was asked to, and signed, each of the loan documents. The documents were then uttered to lenders for the purpose of obtaining a loan based upon fraudulent borrower (Wrightsil s) information. As a result of the fraudulent documents, the lenders sustained losses because they loaned money to Wrightsil at a lower interest rate. 46. Wrightsil went to all of properties and talked to the people who were renting from Harold Hicks. She discovered that the properties held in her name were in a state of disrepair. Wrightsil also advised the renters that the properties were in foreclosure. She learned from the renters that the rent they were paying was lower than the amount of the mortgage, creating a loss each month. Wrightsil told the renters that rent payments should be made to her. 47. Wrightsil put the properties on the market but could not sell them because the appraisals used to purchase the properties were valued at higher than fair market value. 48. Wrightsil s credit score was adversely affected. 49. Wrightsil filed for bankruptcy on May 30, The bankruptcy was discharged on September 9, Wrightsil learned that the Forms 1003 were not accurate after the properties had been foreclosed. 18

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