INDICTMENT. VIOLATION OF COLORADO ORGANIZED CRIME CONTROL ACT, (3) C.R.S. (F2) <37284> 1 (1 count)

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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 Defendants: SCOTT STEVEN RICHARDSON THOMAS WAYNE SARANTINOS DOUGLAS LYNN DEAN MICHAEL PATRICK SPAHN WAYNE PAUL JONES GARY LUNA JASON RANDALL WEBB COURT USE ONLY Case Number: Grand Jury No. 09CR2A Div.: Criminal Ctrm: 9 / INDICTMENT VIOLATION OF COLORADO ORGANIZED CRIME CONTROL ACT, (3) C.R.S. (F2) <37284> 1 (1 count) CONSPIRACY TO COMMIT THEFT SERIES, OVER $15,000, (1),(4); C.R.S. (F4) <0801IC> 2 (1 count) CONSPIRACY TO COMMIT FORGERY, (1)(c); C.R.S. (F6) <1001CC> 3 (1 count) THEFT, (1),(4) C.R.S. (F3) <0801I> 4, 14, 17 (3 counts) 5, 6, 7, 8, 9, 10, 11, 12, 13, 15, 16, 18, 19 (13 counts) The Grand Jury presents the within Indictment and the same is ordered filed. Dated this day of, Shelley I. Gilman Presiding Judge 2009 Denver County Statutory Grand Jury

2 COUNT ONE VIOLATION OF COLORADO ORGANIZED CRIME CONTROL ACT, (3) C.R.S. (F2) <37284> Between and including March 8, 2006 and June 9, 2008, at and triable in the City and County of Denver, State of Colorado, SCOTT STEVEN RICHARDSON, THOMAS WAYNE SARANTINOS, DOUGLAS LYNN DEAN, MICHAEL PATRICK SPAHN, WAYNE PAUL JONES, GARY LUNA and JASON RANDALL WEBB, while employed by or associated with an enterprise, namely: a group of individuals associated in fact, although not a legal entity, unlawfully, feloniously, and knowingly conducted or participated, directly or indirectly, in the enterprise through a pattern of racketeering activity; in violation of sections (3) and , C.R.S. The Enterprise The enterprise alleged in this count was a group of individuals, associated in fact, although not a legal entity. The enterprise included, but was not limited to, the following: SCOTT STEVEN RICHARDSON, THOMAS WAYNE SARANTINOS, DOUGLAS LYNN DEAN, MICHAEL PATRICK SPAHN, WAYNE PAUL JONES, GARY LUNA, JASON RANDALL WEBB, JASON LAWRENCE LYNN, JAY DONOVAN JOST AND JASON JAY GALLOB, and other persons known or unknown, who were associated from time to time in racketeering activity that was related to the conduct of the enterprise. Pattern of Racketeering Activity as to Count 1 For purposes of this count, the defendants engaged in acts related to the conduct of the enterprise, including: As to SCOTT STEVEN RICHARDSON, the acts described in counts 1-19, including any lesser included offenses of these counts. As to THOMAS WAYNE SARANTINOS, the acts described in counts 1-19, including any lesser included offenses of these counts. As to DOUGLAS LYNN DEAN, the acts described in counts 1-5, 7, 9, 10, 12 19, including any lesser included offenses of these counts. As to MICHAEL PATRICK SPAHN, the acts described in counts 1-19, including any lesser included offenses of these counts. As to WAYNE PAUL JONES, the acts described in counts 1-10, 13-19, including any lesser included offenses of these counts. As to GARY LUNA, the acts described in counts 1-11, 13-19, including any lesser included offenses of these counts.

3 As to JASON RANDALL WEBB, the acts described in counts 1-3, 5, 6, 8, 9, 12-19, including any lesser included offenses of these counts. COUNT TWO CONSPIRACY TO COMMIT THEFT SERIES, OVER $15,000, (1),(4); C.R.S. (F4) <0801IC> Between and including March 8, 2006 and May 11, 2007, at and triable in the City and County of Denver, State of Colorado, SCOTT STEVEN RICHARDSON, THOMAS WAYNE SARANTINOS, DOUGLAS LYNN DEAN, MICHAEL PATRICK SPAHN, WAYNE PAUL JONES, GARY LUNA and JASON RANDALL WEBB, with the intent to promote or facilitate the commission of the crime of theft, unlawfully and feloniously agreed with SCOTT STEVEN RICHARDSON, THOMAS WAYNE SARANTINOS, DOUGLAS LYNN DEAN, MICHAEL PATRICK SPAHN, WAYNE PAUL JONES, GARY LUNA, JASON RANDALL WEBB, JASON LAWRENCE LYNN, JAY DONOVAN JOST AND JASON JAY GALLOB, and a person or persons to the Grand Jury unknown that one or more of them would engage in conduct which constituted that crime or an attempt to commit that crime, or agreed to aid the other person or persons in the planning or commission or attempted commission of that crime, and an overt act in pursuance of the conspiracy was committed by one or more of the conspirators; in violation of sections (1),(4) and , C.R.S. COUNT THREE CONSPIRACY TO COMMIT FORGERY, (1)(c); C.R.S. (F6) <1001CC> Between and including March 8, 2006 and May 11, 2007, at and triable in the City and County of Denver, State of Colorado, SCOTT STEVEN RICHARDSON, THOMAS WAYNE SARANTINOS, DOUGLAS LYNN DEAN, MICHAEL PATRICK SPAHN, WAYNE PAUL JONES, GARY LUNA and JASON RANDALL WEBB, with the intent to promote or facilitate the commission of the crime of Forgery, unlawfully and feloniously agreed with SCOTT STEVEN RICHARDSON, THOMAS WAYNE SARANTINOS, DOUGLAS LYNN DEAN, MICHAEL PATRICK SPAHN, WAYNE PAUL JONES, GARY LUNA, JASON RANDALL WEBB and JASON LAWRENCE LYNN, JAY DONOVAN JOST AND JASON JAY GALLOB, and a person or persons to the Grand Jury unknown that one or more of them would engage in conduct which constituted that crime or an attempt to commit that crime, or agreed to aid the other person or persons in the planning or commission or attempted commission of that crime, and an overt act in pursuance of the conspiracy was committed by one or more of the conspirators; in violation of sections (1)(c) and , C.R.S. The facts supporting Counts 1 through 3 are as follows: 2. At all times relevant to the indictment Scott Steven Richardson (Richardson) and Thomas Wayne Sarantinos (Sarantinos) owned or controlled Absolute Lending Solutions, LLC (Absolute). Absolute was formed and registered with the Colorado 3

4 Secretary of State on May 11, Steve Richardson was the registered agent for Absolute. Sarantinos was the registered agent when Absolute s when the annual report was filed on May 10, The principal street addresses for Absolute were Locust St., Thornton, CO and Grant St. #553, Northglenn, CO At all times relevant to the indictment Michael Patrick Spahn (Spahn) owned or controlled MJ Appraisals (MJ). The principal street address for MJ was 2810 West 114 th Ct., Westminster, CO MJ Appraisals was formed and registered with the Colorado Secretary of State on February 1, Michael Spahn is the registered agent for MJ. 4. At all times relevant to the indictment, Wayne Paul Jones, Jr. (Jones) owned or controlled Intrepid Investors Corp. (Intrepid Investors). Intrepid was formed and registered with the Colorado Secretary of State on June 13, The initial registered agent was James W. McGehee. On February 13, 2003 Jones applied for a reinstatement for Intrepid, naming himself as the registered agent. The principal street address was Clermont St., Thornton, CO At all times relevant to the indictment, Jones owned or controlled Homeowners Equity Solutions, Inc. (Homeowners). Homeowners was formed and registered with the Colorado Secretary of State on February 20, The principal street address of Homeowners was 7450 W. 52 nd Ave #M201, Arvada, CO At all times relevant to the indictment Jason Lawrence Lynn (Lynn) owned or controlled Superior Financial Group, LLC (Superior). Superior was formed and registered with the Colorado Secretary of State on January 16, The principal street address of Superior was 525 S. Snowmass Circle, Superior, CO At all times relevant to the indictment Jason Jay Gallob owned or controlled Metro Mortgage Banking, Inc. (Metro). Metro was formed and registered with the Colorado Secretary of State on June 21, The principal street address of Metro was 2509 E. 147 th Ave., Brighton, CO At all times relevant to the indictment, Jay Donovan Jost (Jost) owned or controlled Broomfield Lending, LLC, MI-T Investments, LLC, and Y-ZER Investments, LLC. 9. Broomfield Lending, LLC (Broomfield) was formed and registered with the Colorado Secretary of State on October 25, At all times relevant to the indictment Jost is listed as the registered agent for Broomfield. The principal street address for Broomfield is 1004 Depot Hill Road #2-B, Broomfield, CO The mailing address for Broomfield is P.O. Box 1224, Broomfield, CO MI-T Investments, LLC (MI-T) was formed and registered with the Colorado Secretary of State on January 26, At all times relevant to the indictment Jost is listed as the registered agent for MI-T. The principal street address for MI-T is 1004 Depot Hill Road #2-B, Broomfield, CO The mailing address for MI-T is P.O. Box 1224, 4

5 Broomfield, CO Y-ZER Investments, LLC (Y-ZER) was formed and registered with the Colorado Secretary of State on April 30, Steve Colangelo is listed as the registered agent for Y-ZER. Company paperwork lists Jost as Y-ZER s manager. The principal street address for Y-ZER is 1004 Depot Hill Road #2-B, Broomfield, CO The mailing address for Y-ZER is P.O. Box 1224, Broomfield, CO At all times relevant to the indictment, Douglas Lynn Dean (Dean) was employed as a loan officer by Absolute. 13. At all times relevant to the indictment Gary Luna (Luna) was employed as a loan officer by Absolute. 14. At all times relevant to the indictment Jason Randall Webb (Webb) was a notary public commissioned by the State of Colorado. 15. At all times relevant to the indictment Sharon King (King) was the mother-in-law of Michael Spahn and a Notary Public. 16. At all times relevant to the indictment Candice Bannias (Bannias) worked as a Closing Agent and was a Notary Public. Ms. Bannias was previously married to Jason Webb and they have two children together. 17. Jost was a real estate investor who specialized in purchasing houses in danger of, or in, foreclosure. After making these purchases, he contacted Spahn to assist him in finding buyers for the properties. These homes were often presented to potential buyers as an opportunity to buy investment property. 18. Spahn would then contact Sarantinos and Richardson at Absolute for assistance in finding buyers or investors. Spahn would appraise many of these properties, through MJ Appraisals, at a value well above their actual value. This allowed the investor to take out a mortgage loan above the home s actual value. When the houses were sold, Jost would pay Spahn from the proceeds, and Spahn would pay Richardson and Sarantinos. Between January 6, 2005 and July 2, 2007 Jay Jost issued 66 checks totaling $2,606, to Spahn for proceeds from the sale of houses. Between March 14, 2006 and November 9, 2007 Spahn issued 15 checks totaling $300, to Richardson and/or Absolute for proceeds from the sale of houses. 19. In about June 2005, Luna was recruited by Sarantinos to come to Denver from Chicago to work for Absolute. Sarantinos asked him to work as a Spanish speaking loan officer. 20. After working for a short time as a loan officer, Luna was approached by Sarantinos to become an investor and was told the following: as an investor Luna would not need to make a down payment. He would actually be paid $5,000 to $10,000 for the use of his credit to purchase houses. Sarantinos said that the houses were in foreclosure and after 5

6 the purchase they would be rented to the previous owner or another person. This rent would cover the mortgage payment. Sarantinos indicated that during the time the occupant paid rent, Luna s credit would improve. If the home wasn t rented out or could not be sold and went into foreclosure, Luna was assured that he would still be able to buy a house two years after the foreclosure. He was also told that the damage to his credit history would be removed after seven years. 21. Since Luna s credit was not sufficient to get a loan he contacted a group of his friends and acquaintances in Roma, Texas and offered the real estate investment opportunity Sarantinos told him about to his friends there. Raul Pena, Ricardo Benitez, Jorge Barrera, Sr., Jorge Barrera, Jr. and Edward Salinas accepted. He also solicited his girlfriend, Stephanie Beltran, a Colorado resident; and his mother, Amanda Luna, who lived in Illinois. They also agreed to become investors and buy houses. During the times relevant to the indictment houses were purchased in the names of the Texas investors, Stephanie Beltran, and Amanda Luna. 22. These investors were not required to put any money down. All of the loan application paperwork was done by Absolute. The Uniform Residential Loan Applications (Form 1003) for all of the investors were filled out and submitted by Absolute. Absolute put Colorado addresses on the Form 1003 s. None of the Texas investors or Amanda Luna had ever lived in Colorado. 23. The Colorado Revised Statutes Section (4)(a)(b) sets out the duties and obligations of Notary Public s in the State. It states in part that: 4) No notary shall sign a certificate or other statements as to a notarial act to the effect that a document or any part thereof was attested by an individual, unless: (a) Such individual has attested such document or part thereof while in the physical presence of such notary; and (b) Such individual is personally known to such notary as the person named in the certificate, statement, document, or part thereof, or such notary receives satisfactory evidence that such individual is the person so named. 24. Richardson, Luna or persons unknown at Absolute signed the investors names on the documents. These documents were then brought to Webb, who notarized them without ever having seen or met the applicants. 25. The Form 1003 s always indicated that the borrowers made sufficient money to lower the debt to income ratio. This made it more likely that the mortgage loan would be granted. This was done using the following methods: fraudulent verifications of employment, fraudulent payroll check stubs, fraudulent verifications of rent or mortgage, fraudulent bank statements, and fraudulent tax forms. 26. Dean and Luna created fraudulent bank statements and checks to be submitted with the loan packages. The checks were used as evidence that the applicants had paid rent for at least two years. Dean and Luna created fraudulent personal checks in Beltran s name and Luna signed his name to them. Dean and Luna also created payroll check stubs from Superior Financial Group for Beltran, who had never worked there. 6

7 27. Verifications of employment were created indicating that the applicants worked at one of the companies owned by Jones or Spahn. When lenders called the numbers given, Jones and Spahn told the lenders that the applicants worked there, and that the prospects of continued employment were excellent. Jones and Richardson signed off on verification of employment forms. None of the investors ever worked for the companies in whose names the verifications of employment were written. 28. Verifications of employment were also created showing that loan applicants worked at Superior Financial Group, the company owned by Jason Lynn. Lynn provided verifications of employment on standard forms and over the telephone when contacted by lenders. Between August 3, 2005 and June 9, 2008 Spahn issued 23 checks to Lynn totaling $680, When the transactions closed, neither the closing agent for the title company nor the notary was present. Webb was not present to verify the identity of the borrowers by checking photo identification and signatures. 30. If multiple house purchases were being made for the various investors, those purchases had to be completed in less than a month because once they showed up on the applicant s credit report, buying additional properties was more difficult. 31. After Pena, Benitez, Barrera, Sr., Barrera, Jr. Salinas and Beltran made their initial real estate purchases and were paid, Luna, Richardson, Sarantinos and Dean used their financial information to borrow money from lenders for other purchases without the knowledge or consent of Pena, Benitez, Barrera, Sr., Barrera, Jr. Salinas and Beltran. COUNT FOUR THEFT, (1),(4) C.R.S. (F3) <0801I> Between and including March 8, 2006 and August 17, 2006, at and triable in the City and County of Denver, State of Colorado, SCOTT STEVEN RICHARDSON, THOMAS WAYNE SARANTINOS, DOUGLAS LYNN DEAN, MICHAEL PATRICK SPAHN, WAYNE PAUL JONES, and GARY LUNA, unlawfully, feloniously, and knowingly obtained or exercised control over things of value, namely: MONEY of COUNTRYWIDE HOME LOANS, WILMINGTON FINANCE, WMC MORTGAGE CORP., NEW CENTURY MORTGAGE CORP., FIRST CAPITAL MORTGAGE CORP., ARGENT MORTGAGE CORP., twice or more within a period of six months, with an aggregate value of fifteen thousand dollars or more, without authorization, or by threat or deception, and intended to deprive COUNTRYWIDE HOME LOANS, WILMINGTON FINANCE, WMC MORTGAGE CORP., NEW CENTURY MORTGAGE CORP., FIRST CAPITAL MORTGAGE CORP., ARGENT MORTGAGE CORP., permanently of its use or benefit, or knowingly used, concealed, or abandoned the thing of value in such manner as to permanently deprive COUNTRYWIDE HOME LOANS, WILMINGTON FINANCE, WMC MORTGAGE CORP., NEW CENTURY MORTGAGE CORP., FIRST CAPITAL MORTGAGE CORP., ARGENT MORTGAGE CORP., of its use or benefit, or knowingly 7

8 used, concealed, or abandoned the thing of value intending that such use, concealment, or abandonment would deprive COUNTRYWIDE HOME LOANS, WILMINGTON FINANCE, WMC MORTGAGE CORP., NEW CENTURY MORTGAGE CORP., FIRST CAPITAL MORTGAGE CORP., ARGENT MORTGAGE CORP., permanently of its use or benefit; in violation of section (1)(a)-(c), (4), C.R.S. COUNT FIVE On or about March 8, 2006, at and triable in the City and County of Denver, State of DOUGLAS LYNN DEAN, MICHAEL PATRICK SPAHN, WAYNE PAUL JONES, GARY LUNA and JASON RANDALL WEBB, with the intent to defraud COUNTRYWIDE HOME LOANS, 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 PACKAGE; in violation of section (1)(c), C.R.S. The facts supporting Counts 4 and 5 are as follows: 2. On March 8, 2006, Deer Valley Rd., Golden, CO was purchased in the name of Ricardo Benitez for $445,000 with a mortgage loan from Countrywide Home Loans. 3. The Form 1003 submitted as part of the loan application package for the Deer Valley Rd. property shows that Benitez was employed by Intrepid Investors at a monthly salary of $8,335. Benitez was never employed by Intrepid Investors. 4. The Form 1003 submitted by Absolute as part of the loan application package for the Deer Valley Rd. property shows Mr. Benitez living at 1045 Seacrest St., Golden, CO. Mr. Benitez never lived in Colorado. 5. The closing documents were notarized by Dean. 6. Loan proceeds for $109, were wire transferred to the account of Jones company, Homeowners Equity Solutions. 7. The payments were not made on the loan and the house went to foreclosure on or about April 9,

9 COUNT SIX On or about March 13, 2006, at and triable in the City and County of Denver, State of MICHAEL PATRICK SPAHN, WAYNE PAUL JONES, GARY LUNA and JASON RANDALL WEBB, with the intent to defraud WILMINGTON FINANCE, 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 PACKAGE; in violation of section (1)(c), C.R.S. The facts supporting Counts 4 and 6 are as follows: 2. On March 13, 2006, 5410 W. Caryl Pl., Littleton, CO was purchased in the name of Ricardo Benitez from Broomfield Lending for $315,000 with a mortgage loan from Wilmington Finance. 3. The Form 1003 submitted by Absolute as part of the loan application package for the W. Caryl Pl. property shows that Benitez was employed by Intrepid Investors at a monthly salary of $7,000. Mr. Benitez was never employed by Intrepid Investors. 4. The appraisal for the W. Caryl Pl. property was done by MJ Appraisals. 5. The closing documents were notarized by Webb. 6. Proceeds of the sale for $104,419 were paid to Broomfield Lending. COUNT SEVEN On or about April 14, 2006, at and triable in the City and County of Denver, State of DOUGLAS LYNN DEAN, MICHAEL PATRICK SPAHN, WAYNE PAUL JONES, and GARY LUNA, with the intent to defraud WMC MORTGAGE CORP., 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 PACKAGE; in violation of section (1)(c), C.R.S. 9

10 The facts supporting Counts 4 and 7 are as follows: 2. On April 14, 2006, E. Idaho Pl, Aurora, CO was purchased in the name of Ricardo Benitez from Broomfield Lending for $237,000 with a mortgage loan from WMC Mortgage Corp. 3. The Form 1003 submitted by Absolute as part of the loan application package for the E. Idaho Pl. property shows that Benitez was employed by Intrepid Investors at a monthly salary of $5,056. Mr. Benitez was never employed by Intrepid Investors. 4. The Verification of Rent History for the Benitez loan package was signed by Wayne Jones. 5. Bank account records from Colorado United Credit Union, located at 1501 Del Norte St., Denver, CO 80221, were submitted for the Benitez loan package. The account number was not a valid Credit Union account. 6. The closing documents were notarized by Sharon King. 7. The appraisal for the E. Idaho Pl. property was done by MJ Appraisals. 8. Proceeds of the sale for $72, were paid to Broomfield Lending. 9. The payments were not made on the loan and the house went to foreclosure on or about April 11, COUNT EIGHT On or about May 31, 2006, at and triable in the City and County of Denver, State of MICHAEL PATRICK SPAHN, WAYNE PAUL JONES, GARY LUNA and JASON RANDALL WEBB, with the intent to defraud FIRST CAPITAL MORTGAGE CORP., 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 PACKAGE; in violation of section (1)(c), C.R.S. The facts supporting Counts 4 and 8 are as follows: 10

11 2. On May 31, 2006, 3112 W. 36 th Ave. Denver, CO was purchased from Broomfield Lending in the name of Beltran for $330,000 with a mortgage loan from First Capital Mortgage. 3. The Form 1003 submitted by Absolute as part of the loan application package for 3112 W. 36 th Ave. shows that Beltran was employed by Homeowner s Equity Solutions at a monthly salary of $7,300. Beltran never worked for Homeowner s Equity Solutions. 4. The closing documents were notarized by Webb. 5. The appraisal for 3112 W. 36 th Ave. was done by MJ Appraisals. 6. Proceeds of the sale for $328, 177 were paid to Broomfield Lending. 7. The payments were not made on the loan and the house went to foreclosure on about March 29, COUNT NINE On or about June 8, 2006, at and triable in the City and County of Denver, State of DOUGLAS LYNN DEAN, MICHAEL PATRICK SPAHN, WAYNE PAUL JONES, GARY LUNA and JASON RANDALL WEBB, with the intent to defraud ARGENT MORTGAGE CORP., 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 PACKAGE; in violation of section (1)(c), C.R.S. The facts supporting Counts 4 and 9 are as follows: 2. On June 8, 2006, 2133 E. Dartmouth Ave. Denver, CO was purchased from MI- T Investments, LLC in the name of Beltran for $315,000 with a mortgage loan from Argent Mortgage Corp. 3. The Form 1003 submitted by Absolute as part of the loan application package for 2133 E. Dartmouth Ave. shows that Beltran was employed by Intrepid Investors at a monthly salary of $5, The closing documents were notarized by Webb and Bannias. 11

12 5. Proceeds of the sale for $310, were paid to Broomfield Lending. 6. The payments were not made on the loan and the house went to foreclosure on or about February 20, COUNT TEN On or about June 29, 2006, at and triable in the City and County of Denver, State of DOUGLAS LYNN DEAN, MICHAEL PATRICK SPAHN, WAYNE PAUL JONES, and GARY LUNA, with the intent to defraud WILMINGTON FINANCE, 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 PACKAGE; in violation of section (1)(c), C.R.S. The facts supporting Counts 4 and 10 are as follows: 2. On June 29, 2006, 1240 Valentia St., Denver, CO was purchased from Broomfield Lending in the name of Beltran for $190,000 with a mortgage loan from Wilmington Finance. 3. The Form 1003 submitted by Absolute as part of the loan application package for 1240 Valentia St. shows that Beltran was employed by Intrepid Investors at a monthly salary of $6, The closing documents were notarized by Sharon King. 5. Proceeds of the sale for $185,947 were paid to MI-T Investments, LLC. 6. The payments were not made on the loan and the house went to foreclosure on or about February 13, COUNT ELEVEN On or about July 14, 2006, at and triable in the City and County of Denver, State of MICHAEL PATRICK SPAHN, and GARY LUNA, with the intent to defraud FIRST CAPITAL MORTGAGE CORP., unlawfully, feloniously, and falsely made, completed, 12

13 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 PACKAGE; in violation of section (1)(c), C.R.S. The facts supporting Counts 4 and 11 are as follows: 2. On July 14, 2006, th St. Golden, CO was purchased from Jay Jost for Empire Group, LLC, in Amanda Luna s name for $324,000 with a mortgage loan from First Capital Mortgage Corp. 3. The Form 1003 submitted by Absolute as part of the loan application package for th St. shows that Amanda Luna was employed by Superior Financial at a monthly salary of $12,889. Amanda Luna was never employed by Superior Financial. 4. The closing documents were notarized by Sharon King. 5. Proceeds of the sale for $97, were paid to Jost. 6. The payments were not made on the loan and the house went to foreclosure on or about October 23, COUNT TWELVE On or about August 3, 2006, at and triable in the City and County of Denver, State of DOUGLAS LYNN DEAN, MICHAEL PATRICK SPAHN, and JASON RANDALL WEBB, with the intent to defraud ARGENT MORTGAGE CORP., 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 PACKAGE; in violation of section (1)(c), C.R.S. The facts supporting Counts 4 and 12 are as follows: 2. On August 3, 2006, Martingale Lane, Parker, CO was purchased from Broomfield Lending in Sharon King s name for $430,000 with a mortgage loan from 13

14 Argent Mortgage Co. 3. The mortgage loan was brokered by Dean and Absolute Lending. 4. The Form 1003 submitted by Absolute as part of the loan application package for Martingale shows that Sharon King was employed by MJ Appraisals at a monthly salary of $12, The closing documents were notarized by Webb and Bannias. 6. Proceeds of the sale for $425, were paid to Jost. 7. The payments were not made on the loan and the house went to foreclosure on or about October 31, COUNT THIRTEEN On or about August 17, 2006, at and triable in the City and County of Denver, State of DOUGLAS LYNN DEAN, MICHAEL PATRICK SPAHN, WAYNE PAUL JONES, GARY LUNA and JASON RANDALL WEBB, with the intent to defraud NEW CENTURY MORTGAGE CORP., 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 PACKAGE; in violation of section (1)(c), C.R.S. The facts supporting Counts 4 and 13 are as follows: 2. On August 17, 2006, 1625 Larimer St. #2803, Denver, CO was purchased from Wellton Mortgage Co. in Sharon King s name for $400,000 with a mortgage loan from New Century Mortgage Corp. 3. The mortgage loan was brokered by Dean and Absolute Lending. 4. The Form 1003 submitted by Absolute as part of the loan application package for 1625 Larimer St. shows that King was employed by MJ Appraisals at a monthly salary of $11, The closing documents were notarized by Webb. 14

15 6. Proceeds of the sale for $149, were paid to MI-T Investments, LLC. 7. The payments were not made on the loan and the property went to foreclosure on or about June 5, COUNT FOURTEEN THEFT, (1),(4) C.R.S. (F3) <0801I> Between and including October 6, 2006 and December 11, 2006, at and triable in the City and County of Denver, State of Colorado, SCOTT STEVEN RICHARDSON, THOMAS WAYNE SARANTINOS, DOUGLAS LYNN DEAN, MICHAEL PATRICK SPAHN, WAYNE PAUL JONES, GARY LUNA and JASON RANDALL WEBB, unlawfully, feloniously, and knowingly obtained or exercised control over things of value, namely: MONEY of FIELDSTONE MORTAGE CO., and MASTER FINANCIAL, twice or more within a period of six months, with an aggregate value of fifteen thousand dollars or more, without authorization, or by threat or deception, and intended to deprive FIELDSTONE MORTAGE CO., and MASTER FINANCIAL permanently of its use or benefit, or knowingly used, concealed, or abandoned the thing of value in such manner as to permanently deprive FIELDSTONE MORTAGE CO., and MASTER FINANCIAL of its use or benefit, or knowingly used, concealed, or abandoned the thing of value intending that such use, concealment, or abandonment would deprive FIELDSTONE MORTAGE CO., and MASTER FINANCIAL permanently of its use or benefit; in violation of section (1)(a)-(c), (4), C.R.S. COUNT FIFTEEN On or about October 6, 2006, at and triable in the City and County of Denver, State of DOUGLAS LYNN DEAN, MICHAEL PATRICK SPAHN, WAYNE PAUL JONES, GARY LUNA and JASON RANDALL WEBB, with the intent to defraud FIELDSTONE MORTGAGE CO., 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 PACKAGE; in violation of section (1)(c), C.R.S. COUNT SIXTEEN On or about December 11, 2006, at and triable in the City and County of Denver, State of DOUGLAS LYNN DEAN, MICHAEL PATRICK SPAHN, WAYNE PAUL JONES, GARY LUNA and JASON RANDALL WEBB, with the intent to defraud MASTER FINANCIAL, unlawfully, feloniously, and falsely made, completed, altered, or uttered a written 15

16 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 PACKAGE; in violation of section (1)(c), C.R.S. The facts supporting Counts 14, 15 and 16 are as follows: 2. On October 6, 2006, 9331 Longstone Dr., Parker, CO was purchased from Broomfield Lending in Jorge Barrera Jr. s name for $330,000 with a mortgage loan from Fieldstone Mortgage Co. 3. The Form 1003 submitted by Absolute as part of the loan application package for 9331 Longstone shows that Barrera was employed by MJ Appraisals at a monthly salary of $7,986. At all times relevant to the indictment, Barrera was not employed by MJ Appraisals. 4. The closing documents were notarized by Webb. 5. Proceeds of the sale for $79,160 were paid to Broomfield Lending. 6. The payments were not made on the loan and the house went to foreclosure on or about November 1, On December 11, 2006, 9306 S. Larksparrow Dr., Highlands Ranch, CO 80126, was purchased from Lisa Lopez and Y-ZER Investments, LLC in Jorge Barrera s name for $475,000 with a mortgage loan from Master Financial. 8. The loan was brokered by The Mortgage Gallery. 9. The Form 1003 submitted by Absolute as part of the loan application package for 9306 S. Larksparrow Dr., shows that Barrera was employed by Intrepid Investors at a monthly salary of $17,000. At all times relevant to the indictment, Barrera was not employed by Intrepid Investors. 10. The Form 1003 submitted for 9306 S. Larksparrow also list bank account number at the Bank of Colorado as Barrera s account. At all times relevant to the indictment, Barrera did not have a bank account at Bank of Colorado. 11. The closing documents were notarized by Webb and Bannias. 12. The appraisal for 9306 S. Larksparrow Dr. was done by Hyatt Appraisal. 16

17 13. Proceeds of the sale for $147, were paid to Jost. 14. The payments were not made on the loan and the house went to foreclosure on or about March 5, COUNT SEVENTEEN THEFT, (1),(4) C.R.S. (F3) <0801I> Between and including January 30, 2007 and May 11, 2007, SCOTT STEVEN RICHARDSON, THOMAS WAYNE SARANTINOS, DOUGLAS LYNN DEAN, MICHAEL PATRICK SPAHN, WAYNE PAUL JONES, GARY LUNA and JASON RANDALL WEBB, unlawfully, feloniously, and knowingly obtained or exercised control over a thing of value, namely: MONEY of ACCREDITED HOME LENDERS, INC., and AURORA LOAN SERVICES, twice or more within a period of six months, with an aggregate value of fifteen thousand dollars or more, without authorization, or by threat or deception, and intended to deprive ACCREDITED HOME LENDERS, INC., and AURORA LOAN SERVICES, permanently of its use or benefit, and knowingly used, concealed, or abandoned the thing of value in such manner as to permanently deprive ACCREDITED HOME LENDERS, INC., and AURORA LOAN SERVICES, of its use or benefit; in violation of section (1)(a)(b),(2)(d), C.R.S. COUNT EIGHTEEN On or about January 30, 2007, at and triable in the City and County of Denver, State of DOUGLAS LYNN DEAN, MICHAEL PATRICK SPAHN, WAYNE PAUL JONES, GARY LUNA and JASON RANDALL WEBB, with the intent to defraud ACCREDITED HOME LENDERS, INC., 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 PACKAGE; in violation of section (1)(c), C.R.S. The facts supporting Counts 17 and 18 are as follows: 2. On January 30, 2007, 9411 Nagel Dr., Denver, CO was purchased from Michael Spahn in Salinas name for $182,000 with a mortgage loan from Accredited Home Lenders, Inc. 17

18 3. The loan was brokered by Dean and Absolute. 4. The Form1003 submitted by Absolute as part of the loan application package for 9411 Nagel Dr. shows that Salinas was working for Superior Financial at a salary of $7,500 per month. At all times relevant to the indictment, Salinas did not work for Superior Financial. 5. The Form 1003 submitted for 9411 Nagel Dr. also lists account number at Chase Bank as Salinas account. At all times relevant to the indictment, Salinas did not have an account with the listed account number at Chase Bank. 6. The verification of rent submitted for 9411 Nagel Dr. was signed by Wayne Jones and lists 5655 Wellington Pkwy., Arvada CO 80003, as Salinas address. At all times relevant to the indictment, Salinas did not live in Colorado. COUNT NINETEEN On or about May 11, 2007, at and triable in the City and County of Denver, State of DOUGLAS LYNN DEAN, MICHAEL PATRICK SPAHN, WAYNE PAUL JONES, GARY LUNA and JASON RANDALL WEBB, with the intent to defraud AURORA LOAN SERVICES, 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 PACKAGE; in violation of section (1)(c), C.R.S. The facts supporting Counts 17 and 19 are as follows: 2. On May 11, 2007, 3291 Niagara St. Denver, CO was purchased from MI-T Investments, LLC in Pena s name for $230,000 with a mortgage loan from Aurora Loan Services. 3. The loan was brokered by Dean and Absolute Lending. 4. The Form1003 submitted by Absolute as part of the loan application package for 3291 Niagara St. shows that Pena was employed by Intrepid Investors at a monthly salary of $7,250. Pena never worked for Intrepid Investors. 5. The closing documents were notarized by Webb and Andrea Dillinger. 18

19 6. The Verification of Rent for the Pena loan package was done by MJ Investments. 7. The appraisal for 3291 Niagara St. was done by MJ Appraisals. 8. Proceeds of the sale for $224, were paid to MI-T Investments. 9. The payments were not made on the loan and the house went to foreclosure on or about October 17,