Showing posts with label Larry Reed. Show all posts
Showing posts with label Larry Reed. Show all posts

Saturday, March 5, 2011

Mortgage Fraudster Larry Maxwell...Looking Old And Broken


Mug shot therefore in public domain, blog post by John Hoff

In my experience, it takes months for mug shots to hit the website of the Minnesota Department of Corrections (DOC) but it's just a case of bad things taking time. Today I was tooling around on the site, punching in various names, and I turned up our old friend Larry Maxwell, who committed mortgage fraud at...


...1564 Hillside Ave. N.

Old Larry Maxwell (and, my god, he DOES look old) is doing 16 and 1/2 years, or 198 months and is currently housed in St. Cloud.

R.I.P. Larry Maxwell.

Reside In Prison.


Thursday, September 16, 2010

JNS BLOG EXCLUSIVE: "Imposter Foster" Jerome Kingrussell Held Without Bail On Identity Theft Charges...

Classic image, Sword of Democles
Blog post by John Hoff
Jerome Kingrussell is a name that came up frequently during the notorious and high-profile trial of Larry "Maximum" Maxwell, a mortgage fraud case which swirled around 1564 Hillside Ave. N., a building which was sold by North Minneapolis slumlord Keith Reitman to a man named Jon Foster. The problem with the deal was Foster was an imposter; Foster's identity had been stolen and petty criminal Jerome Kingrussell was put forward to play the part of Jon Foster in the criminal scheme.

Part of this story is extremely interesting to folks in the Jordan neighborhood, in that former JACC executive director Jerry Moore received $5,000 off the fraudulent deal, click here for City Pages story.

But back to the subject of career criminal and crackhead Jerome Kingrussell...

Kingrussell was given a plea bargain in the Larry Maxwell fraud case, a textbook example of trading up the little fish for the big fish. The victims of identity theft were, of course, galled by the arrangment. In fact, Jon Foster's wife Melony Michaels pointed out Kingrussell has more charges against him "than he is old." (Click here for article)

It was, however, widely assumed Kingrussell would screw up again, and the massive amount of time hanging over his head would all come crashing down.

Now it appears the prophesy has come to pass. Kingrussell has been arrested, and is being held without bail. The Hennepin County jail roster lists the following:

1/1 IDENTITY THEFT-TRANSFERS/POSSESSES/USES IDENTITY OF OTHER PERSON BLOOMINGTON PD ARREST AND DETENTION FELONY $0
HWB BY DC 10/6/2010..08:30 DOWNTOWN Address

1/2 IDENTITY THEFT-TRANSFERS/POSSESSES/USES IDENTITY OF OTHER PERSON BLOOMINGTON PD ARREST AND DETENTION FELONY $0
10/6/2010..08:30 DOWNTOWN Address

2/1 OTHER COUNTY/FELONY ANOKA CO SO HOLD FELONY $0
HOLD W/O BAIL ..

3/1 OTHER STATE HCSO HOLD FELONY $0
HOLD W/O BAIL ..

It would appear Kingrussell is scheduled for a court hearing on October 6. I wonder what the little fish has to offer in trade THIS time?

Monday, July 19, 2010

$217K Restitution Ordered In Larry "Maximum" Maxwell Mortgage Fraud Case...

Stock photo and blog post by John Hoff

Larry "Maximum" Maxwell, who sits behind bars over the fraudulent sale of 1564 Hillside Ave. N., (a transaction in which slumlord Keith Reitman was the seller) was the subject of extensive coverage on this blog during his trial and sentencing, click here for an example.

Recently, I was provided a copy of the restitution order in that case, which orders $217,687.54 in damages, click here for a PDF copy. However, the order DENIES a sizable amount of other damages, including enormous amounts of uncompensated time spent by John's wife--Melony Michaels--to investigate the fraud perpetrated on her husband and bring the perpetrators to justice. With much respect to the judge, I think this was a close legal call and unfortunately the judge came down on the wrong side of that restitution. I hope the Hennepin County Attorney appeals this matter and John Foster (and wife) GET ALL THE RESTITUTION THEY ARE ENTITLED TO GET.

As for the individuals who were involved in the 1564 Hillside Ave. N. transaction--(they know who they are)--the angels of justice hover closer every day, so close you can feel their breath and hear their wingbeats. It must be a gut-wrenching feeling, knowing you've done wrong and not only is God watching, but so is the blogosphere.

Monday, March 22, 2010

JNS BLOG EXCLUSIVE: Brad Johnson--Who Prosecuted Larry "Maximum" Maxwell--Running For Anoka County Attorney


Photos from the Facebook page of Brad Johnson, blog post by John Hoff

Information floating around as rumor, pieced together with information from Facebook, and verified with a reliable source positively confirm the following: Brad Johnson is running for Anoka County attorney. No other major media outlet has reported this story, but rumor has it the Star Tribune is currently chasing it.

Johnson is the prosecutor who...


...took down Larry "Maximum" Maxwell for mortgage fraud, a matter reported extensively on this blog.

Click here for Part One.

Click here for Part Two.

Click here for Part Three.

Click here for Part Four.

Click here for a report about the "max of the max" sentence imposed.

Click here for Maxwell waiting to learn his fate, including last photo known to exist of Maxwell as a free man.

Click here for the story of Maxwell's defense attorney--Larry Reed--playing last, desperate cards.

Click here for "Maxwell's butt on the line" as jury hears closing arguments.

Reverend Jerry MacAfee expected to take stand, click here.

Excerpts from transcripts about the mortgage fraud deals, click here.

Prosecution rebuttal witness sinks Maxwell, click here.

Identity theft imposter revealed as Jerome Kingrussel, click here.

Prosecution presses forward, Larry Maxwell doomed, click here.

Things not adding up for a lackluster defense, click here.

And, finally, my personal favorite...a PDF file of the Larry Maxwell criminal complaint, in which especially astute readers might find a familiar name from the Jordan Neighborhood.

So far as I can tell, Larry Maxwell was the biggest state court conviction for racketeering EVER in the state of Minnesota. (If anybody has contrary information, please share it)

Brad Johnson also produced a conviction in the Susan Newell / Ed Boler mortgage fraud case, after the efforts of another prosecutor resulted in a mistrial. (To be fair, that result has been attributed to a quirky juror)

Johnson has an understated style with witnesses, making potential foes cooperative and almost friendly. I have watched this guy in action day after day, and the idea of him running a prosecutor's office is very exciting...particularly since some of the mortgage fraud fungus involves cases with properties stretching from Hennepin to Anoka.

This blog is not only reporting this matter but also moving quickly to endorse Brad Johnson.

Brad Johnson, consider yourself endorsed.

Monday, August 31, 2009

JNS BLOG EXCLUSIVE: Larry Maxwell Gets "Max of the Max" Sentence For Mortgage Fraud, Part 4 of 4

Contributed Photo

It has taken me a while to finish this four part story about the sentencing of Larry Maxwell on August 13, 2009. Since Maxwell spoke last at the hearing, his words have been at the end of the line, buried in my handwritten notes instead of written all over the blogosphere.

But that's fitting somehow. The victims of Maxwell's fraud were able to have their say, without Maxwell's rebuttal right on the heels. But now I'm back from my long road trip and finished eating bugs at CC's birthday party, so it's time for Part Four: Larry Maxwell blaming everybody but HIMSELF for his spectacular "max of the max" downfall for mortgage fraud involving, among other things, wholesale theft of the identity of John Foster.

During the sentencing, Larry Maxwell first spoke to the judge about the position of the podium. The way the podium was facing put Maxwell's back to the spectators, including his victims. Maxwell wanted to be able to address the judge as well as the gallery.

As usual, Maxwell was speaking in a soft, incredibly deferential, even effeminate tone. Later, when he got warmed up, he had a more robust or (one might say) "normal" voice, and at that moment one comes to realize that...

...Maxwell's soft voice is something of an act or affectation.

One couldn't help but think how much Maxwell looked like a pastor warming up for a sermon as he turned the podium toward the spectators in the court. Maxwell first asked not to be interrupted, saying he hadn't been able to say anything during the trial--not entirely a true statement--and, furthermore, he didn't interrupt anybody else. (That part was certainly true)

Maxwell first outlined what he would cover, as though he was giving a PowerPoint presentation. Maxwell planned to speak first to his attorney, Larry Reed, second to his family and friends, third to the prosecuting attorney and then, finally, he would have some words for "the Fosters."

First, addressing his attorney Larry Reed, Maxwell said he appreciated the time and effort. Maxwell believed Reed had represented him with every ounce of energy and determination.

"We have differences," Maxwell said. But those differences had "nothing to do with your energy level and commitment." With Larry Reed cited for contempt of court during the proceeding, one can't help but think some kind of appeal will be made by Maxwell involving inadequate counsel. Of course, any counsel--no matter how adequate--is going to have a tough uphill battle WHEN THE CLIENT IS GUILTY AS SIN AND STACKS UPON STACKS OF EVIDENCE PROVE IT.

I'm just saying.

To his family and friends, Maxwell said "thanks for sticking by me" even when things were tough, "even when things were taken, gone and vandalized." Maxwell appeared to be trying to make the record about the supposed break-in at his home, about things being "gone."

Maxwell saved his most detailed remarks for the prosecutor, Brad Johnson. Liz Johnston assisted Brad Johnson, but was not present at the sentencing hearing and did not appear to be the thrust of Maxwell's remarks. Maxwell spoke of the pre-sentence investigation and how the prosecutor said Maxwell had been "defiant." Maxwell also complained about how Johnson had spoken extensively about the Fosters, even though they were "not involved in all the events."

(Note: John Foster's wife, Melony, uses her own last name of "Micheals.")

In a petulant tone, Maxwell complained about this word "defiant" being applied to him. Where does THAT come from? he asked. How had he been "defiant?" When, precisely? Was it when he said "good morning" to Brad Johnson? Maxwell spoke of the day his father died, and Brad Johnson said "I'm really sorry to hear about the death of your father."

Maxwell thought Johnson seemed sincere in his condolences. But there was another time when Maxwell admitted to becoming angry with Johnson, and saying under his breath "I don't know how you can sleep at night." So was this one utterance evidence of "defiance?"

Fourth on Maxwell's list of minor interactions with Brad Johnson--which Maxwell appeared to be trying, hard, to get into the court record for unknown reasons--was something which supposedly happened "during the fourth week of trial." Larry Maxwell, Brad Johnson, Liz Johnston and Larry Reed were in court. Supposedly, Johnson said, "Mr. Reed, perhaps this is something your client may find funny. I have a joke."

Maxwell said he declined to hear the joke. So were these four interactions, added together, evidence of Maxwell having a spirit of "defiance?"

"You don't know me!" Maxwell proclaimed. "You just DON'T!"

The last time we were here, Maxwell said, the prosecutor had talked about the Fosters. Maxwell said he would "beg to differ" about whether he doesn't feel "extremely bad" about what happened to them. IT IS NOT TRUE, Maxwell declared, that he (and, for that matter, his attorney Larry Reed) do not feel "extremely bad" about what happened to the Fosters.

Despite everything, Maxwell said, he loves his business. He still loves it. He would tell young people to put their best foot forward and encourage them to enter the real estate business. Standing there in a business suit, Maxwell appeared to think himself some kind of role model fit to tell young people, well, something. Anything.

Maxwell did not appear conscious of how completely he had been crushed, how low his status had fallen in society. He was still putting on the personality that goes with the suit. The charade was cringe-inducing. In the spectator stands, teeth were grinding but those gathered sat patiently. Let Maxwell talk, seemed to be their attitude. Let him dig himself an even deeper hole.

Maxwell spoke last to the Fosters. He said the Fosters had been "interested" in the court proceedings and had "been here for hearings." (This is not entirely true, Melony Micheals was excluded for most of the proceedings and, in fact, relied a great deal on this blog for information) Maxwell said he wanted to "reach out, speak, say something" but he couldn't. Maxwell wanted the Fosters to know his silence has "not been because I didn't feel your pain." Maxwell said "I can't say anything better than what the judge said" about what they'd experienced.

Maxwell said he knew everybody was "here to see me sentenced but also to give support to the Fosters." He wished he could do something to fix this situation. One thing Maxwell wanted to say--"and maybe this is defiant," he noted--would be "I have not participated in anything that has injured you or your family."

Now affecting an attitude that he was innocent but forced to take one for the team, Maxwell noted "this is the only system we've got." Over time, Maxwell said, "I will get my justice, too." Maxwell noted that his own relatives had worked in the justice system and he believed in the system despite its flaws...like finding him guility. Or words to that effect.

Addressing his conviction in 2001 for, oh gee, a similar crime, Maxwell said he "pleaded to a crime because I've been brought up to believe that if you do something you tell the truth." So he pleaded to the other crime because, after all, he did it. But he couldn't plead to THIS. Why? Because he didn't do it!

Maxwell said "Mr. Kingrussell (known as "the imposter Foster") sat in this court and he said I (Larry Maxwell) was not involved!"

(Later, individuals in the court room told me Kingrussell's precise testimony was more complicated than that. Any wavering in Kingrussell's testimony had a lot to do with, well, fear of retaliation.

Maxwell said "the credit reports pulled by Centennial mortgage say on them that this identity was stolen as early as February 2006." Maxwell claimed his own first contact was May 31st of 2006 but somebody had been using the identity of John Foster as early as February of 2006.

Maxwell said he remembered how Detective Cardenas "smiled at me" when Maxwell asked Cardenas if he ever followed up on "the lead" with "the guy in the Magnum Dodge." Like the mysterious one-armed man in "The Fugitive," Larry Maxwell's defense keeps bringing up the man in the "Dodge Magnum." Even the word "magnum" had an odd way of popping up during the hearing, with one witness for Larry Mawell claiming she graduated "magnum (sic) cum laude."

In any case, Larry Maxwell said, Detective Cardenas said "No" when asked if he'd followed up with the oh-so-valuable lead about the mysterious man in the Dodge Magnum. Maxwell claimed Cardenas "heckled me the whole time" and said, "Well, if you don't understand, you're gunna understand."

Maxwell said (the evil) Detective Cardenas had "gained the Fosters' confidence" to sell them his sideline business. Showing an obliviousness to jurisdictional lines, Maxwell said "Cardenas may end up being our next chief of police." (Cardenas works for the BLOOMINGTON police department)

Maxwell then brought up an incident which took place during his incarceration. Maxwell said after being jailed--which happened just moments after he was found guilty--within a week a corrections officer wrote Maxwell up for an infraction which Maxwell had supposedly committed. For this infraction, Maxwell had to be in his cell, shut off from other people. His precious commissary privileges were taken away. His phone cards were taken, so he couldn't talk to his mother.

Maxwell said he filed a grievance and went to a grievance hearing. And, after that hearing, Maxwell claimed he was told the punishment was "without basis." The punishment was "overturned." Maxwell claimed somebody in authority at the jail said "I can't give you back the two weeks you couldn't talk to your parents" but, well, the punishment was overturned.

As Maxwell spoke of this incident--growing quite passionate, his voice not nearly as femmy as usual--it was revealing to see how Maxwell's world had drastically shrunk in size. Once his domain was real estate in the Twin Cities and a luxurious lifestyle. Now Maxwell was yapping on about, good grief, injustice with his little commissary privileges. How the mighty have fallen. To make matters worse, Maxwell then compared his conviction on 18 felonies to what happened with the correction officer, how the jailhouse punishment was overturned, and said, "That's God showing me this conviction will be overturned as well."

Yeah, give me a holler when Baby Jesus opens the door to your prison cell, Larry, because I'll be wanting His Picture for my blog. The fact Larry Maxwell was standing at the podium looking SO VERY MUCH like a minister made the spectacle all the more disturbing and borderline blasphemous. The Gospel according to Larry. The meek shall inherit the earth but that's OK, because their identities can be stolen.

"I AM NOT BEING DEFIANT," Larry Maxwell said. "Just because I want my day in court." He claimed "the ball was dropped but it wasn't dropped because of me." While on trial, he'd lost his father and his grandmother.

Maxwell then addressed a Point Number 5 not mentioned in his 4 point outline: his financial assets.

"When you find one thing," Larry Maxwell said, "let me know because I've still got to pay Mr. Reed." Maxwell said "I understand the fixtures have been removed from my home."

Maxwell said he wouldn't want any of his family "investigated by Cardenas, prosecuted by Johnson, or before Judge Chu" and compared himself to a salesman at Best Buy who doesn't realize a transaction is fraudulent.

Later, outside the court room, Realtor Janet Havlish would take exception to that, saying Realtors know their clients much better than THAT and saying Maxwell was representing the real estate profession very badly.

One of Maxwell's final declarations was "Centennial Mortgage is where all the skeletons are."

Attorney Larry Reed then spoke to "note a couple things." Reed objected to "any ruling on restitution without a hearing." Chu said restitution was an issue that will be "dealt with as part of the sentencing" and said she would "order complete restitution in an amount to be determined."

Now turning to the bloody task of imposing the sentence, Judge Chu said Maxwell had "all the advantages in life but used his talents on crime." She was "disappointed" that Maxwell "continues to blame others" for his wrongdoing. Maxwell "orchestrated criminal activity" and the victims were "not just lenders but innocent people." She said "the inevitable foreclosures had an impact on an already troubled neighborhood."

Chu then said racketeering should be ranked at 10. This produced a sentence range of 141 to 198 months. Judge Chu said she would impose a sentence of 198 months (this is more than 16 years) with credit for 113 days served. At this utterance, Janet Havlish--seated near me--made a triumphant motion with her fist. Melony Micheals appeared to drop her head in an attitude of prayerful thanks.

As Judge Chu began to tackle the issue of restitution, Reed interrupted "You said you won't get into the amount!" Chu said "this is in regard to the Fosters" and "you may note your objection but you'll have to wait until after my sentence."

Chu did say, however, she didn't have the authority to order no professional licenses. The state, she said, could bring a civil action in that regard. She said "civil remedies are also available to keep him from contacting the Foster family." Prosecutor Brad Johnson had asked for both these things: no professional licenses after Maxwell served his sentence. No contacting the Foster family. Johnson promised to research this matter further for Judge Chu.

Turning to Maxwell, Chu urged him to "use the time to contemplate your future and move on from past mistakes." There were more fireworks between Chu and Reed, with Reed going on about Maxwell's "right to a hearing to determine restitution." Chu did promise such a hearing for Maxwell, despite the fact she'd already determined part of the restitution as pertained to the Fosters.

The sentencing took so long there was literally a "changing of the guards," though not with all the pomp and circumstance of Buckingham Palace. Larry Maxwell was taken into the "handcuff room" to the right side of the spectators, to the disappointment of some spectators...at least one of whom said she would have preferred to see Maxwell cuffed.

Melony Micheals--forced to be quite frugal due to all the damage to her family's once sterling credit--celebrated with a soup special at a restaurant located near the Hennepin County Government Building, just through the skyway. She treated the guests with her, including this blogger. Micheals made no secret of planning a big civil suit in the wake of Maxwell's conviction while everybody sat and had soup.

But before everybody left the courtroom, Judge Chu came back to tell Melony Micheals "Your comments really did influence my sentence."

Later, there was a party which featured cake. The photo above shows the cake.

Thus did the reign of Larry Maxwell--mortgage fraudster extraordinaire--come to an inglorious end, thanks to an identity theft victim who refused to be a victim, and turned the tables.

This may be Part Four of Four but take my word for it...this story isn't over.

Saturday, August 22, 2009

JNS BLOG EXCLUSIVE: Larry Maxwell Gets "Max Of The Max" Sentence For Mortgage Fraud, Part Three Of Four

Photo By John Hoff, individuals posed for photo


Parts Three and Four of the Larry Maxwell sentencing story took me a while, and I'll have to write the last half from a cheap hotel in Kentucky like a bloggy tribune to Hunter S. Thompson, but there can be no letting up in the telling of NoMi's story of revitalization. Catching and prosecuting the criminals who seeded mortgage fraud into the very soil of our North Minneapolis neighborhoods is part of that epic tale.

And, of all the criminals caught so far...the T.J. Waconia fraudsters, Marlon Pratt, Donald Walthall...only Larry "Maximum" Maxwell has such a cool nickname to go with his crimes. No doubt this will give Maxwell some small degree of comfort as he does 16 years in the pokey. In any case...

If you need to refresh your recollection, click here for a link to Part One. And here is a link to Part Two.

In the photo above, Melony Micheals receives certified copies of the judgment against Larry Maxwell and some of the various business entities involved with Maxwell's crimes. These documents will prove useful in filing civil suits to recover damages, but who will be named in the suits? That's what I'm waiting to see. I bet there will be a few surprises. In any case, Micheals has made no secret of her intention to file civil suits. Anybody who has crossed John Foster and Melony Micheals would be well advised to contact her attorney and come crawling on bended knee, offering to settle. You know who you are.

SPECIAL NOTE: Unfortunately, this blog has consistently misspelled the surname of Melony Micheals as "Michaels." I will use the correct spelling from now forward, but it may take a while to go back and correct old blog posts.

When we last left off, John Foster had finished his detailed, moving testimony about having his identity and life ripped off and it was time for the daughter of Melony Micheals to testify.

Chelsea Micheals will be 20 in March, but can be mistaken for somebody already in her early 20s. Perhaps she just appears more mature than most 20-year-olds, or perhaps extra years have been added to her life from stress. She talked about how her senior year of high school had been tough with her parents' good credit ruined. For example, sports outfits were too expensive in light of the ruined credit and shattered finances. There have also been times the young woman is afraid to go to her car at night, because of fears the criminals who stole her stepfather's identity (like the crackhead Kingrussell) could be dangerous and out to hurt somebody in the Foster/Micheals family.

As if the disruption of high school wasn't bad enough, Chelsea's college has also been impacted. Like many or possibly most middle class college students, Chelsea was hoping to spend a semester abroad. Now that doesn't appear possible, however.

Chelsea's statement was brief. Judge Chu consoled the young woman, especially in regard to the disruption of her education. The whole time, one of Maxwell's family members sat with that odd little half-suppressed smirky look.

Melony Micheals spoke next. Later she would complain that John Foster had stolen some of her material about the impact of having his identity stolen. However, there was more than enough thunder left. In some ways, discussion of the little things was more poignant than the big stuff: like how answering the phone becomes impossible due to constantly-calling creditors (who aren't REALLY your creditors) and how every time you must go through multiple levels to reach a supervisor's supervisor, only to be told they'll be needing to see copies of the police reports about the identity theft...and then the same company would call again, demanding the exact same thing.

To make matters worse, some bill collectors would accuse Micheals of LYING.

Now at the summit, the conclusion, the epic end to the epic trial, Micheals made a point of talking about the many hundreds of hours put in by the investigators and the prosecutors. She talked about a pivotal mistake made by the judicial system which led to this moment: Larry Maxwell had been allowed to keep his real estate license despite previous criminal activity. Micheals hoped aloud something like THAT wouldn't happen again, that the judicial system had finally learned the true nature of Larry Maxwell.

Micheals talked about being unable to refinance the home she shares with John Foster because they already had too many mortgages…FAKE mortgages. When the sentencing finally came down, the suffering still wouldn’t be over. They estimate there will be “seven to ten years of paying and explaining” until they come out from under the shadow cast over their finances. Therefore, Micheals said, Larry Maxwell “shouldn’t get less.”

Micheals talked about the complex and insidious nature of identity theft. If somebody stole your television, the police would have immediately helped. But with identity theft and mortgage fraud, Micheals—who was one of the victims—had to perform her own investigation for a long time until finding a police department which would get involved.

Neighborhoods also suffer due to mortgage fraud, Micheals said, with “boarded up houses with phone books slewed all over the place.”

In conclusion, “You don’t need a mask or gun to get way more than people get for robbing a bank.” This whole time, Maxwell sat without any strong reaction to the words of Foster, Chelsea Micheals, and Melony Micheals. He is one cool cucumber.

Judge Chu told Micheals she had read the victim impact statement submitted earlier and it “made an impact on me.”

“You’re the reason this case is here,” Chu said. “You didn’t give up.” It’s moments like this you wonder when this story will become a Lifetime Movie.

Turning to prosecutor Brad Johnson, Chu said she wanted to hear from the state as to the appropriate ranking for the crime. Johnson rose and spoke of the grueling 7-week jury trial. He said the state sought a prison sentence of 148 months, about 14 years. This was apparently more than any previous mortgage fraud/racketeering case in the State of Minnesota. Ever.

In this case, Johnson said, “There were not just lies on a loan application but lies to fabricate personas.” The fraudulent loans to the lenders were equal to $2,690,175.00. Restitution to the lenders was sought. There were also calculations of restitution by the Fosters. Plus Johnson wanted a “million dollar fine, which is the maximum under the statute.”

Furthermore, the state was asking that “no assets can be transferred or disposed of” and Johnson asked for a “permanent injunction of ANY professional licenses without court approval.” Johnson also sought an order that Maxwell have no contact with the Fosters and never again use the identity of John Foster. The court and the state “need to investigate and seek assets to pay restitution.”

It’s moments like this you have to wonder: is there a buried Larry Maxwell treasure? And if so, who has the map?

Johnson mentioned Tanya Patterson breaking down on the stand, her tenants displaced by foreclosure. And for what? Larry Maxwell did these things “to support a lavish lifestyle.”

Johnson said he wanted Maxwell’s sentence to be a message to those entrusted by the State of Minnesota with professional licenses. The message should be as follows: IF YOU DARE TO COMMIT A FRAUD, YOU WILL BE HELD TO ACCOUNT, THE CONSEQUENCES WILL BE COMMENSURATE WITH THE SEVERITY AND GRAVITY OF YOUR SCHEME.

(Caps not in original volume of statement)

Now it was Larry Maxwell’s turn to say something in regard to his prison sentence. He first wanted to speak to Larry Reed, the attorney Maxwell had (kind of, sort of) tried to fire. See Part One.

They went up into the jury box to whisper whisper whisper. I watched Reed’s face and tried to read it. Reed didn’t seem to be projecting much confidence. Reed had the kind of facial expression which says, “Look, no matter what you do here…you’re screwed. What can I tell you?”

To be continued in Part Four.

Saturday, August 15, 2009

JNS BLOG EXCLUSIVE: Larry Maxwell Gets "Max Of The Max" Sentence For Mortgage Fraud (Part 2 Of 4)


In the photo above, Hawthorne Housing Director Jeff Skrenes goes to the sentencing for Larry Maxwell, wearing "Max Headroom" sunglasses from a McDonald's Happy Meal from days of yore.

...

After all the legal ducking and dodging--the attempts to put off the imposition of a prison sentence when the victims were already there in court, ready to give impact statements--after all the unclear answers to very clear questions about whether attorney Larry Reed was still representing convicted mortgage fraudster Larry Maxwell--the moment came after long years when the victims could finally rise to speak.

For that matter, Maxwell's family members could have also rose to speak on his behalf. None volunteered to do so, when Judge Chu opened up the opportunity to speak to "anybody in the gallery." There were actually some small gasps as the realization set in: none of Larry Maxwell's family were going to rise and speak in his defense, not even to say, "He is kind to his children." In fact, word was that out in the hallway two of Maxwell's daughters had apologized to John Foster "on behalf of our father." Foster described the two as "very gracious."

John Foster--the REAL John Foster--rose to speak at a podium a few feet away from the prosecutor's table. I'd heard how difficult this was for him. How he is not naturally sociable, gregarious, or a public speaker but a classic introvert. John Foster reportedly gets shy and uncomfortable if he has to make a phone call...

There had been talk of John Foster not speaking at all. Written victim impact statements had already been submitted. Strictly speaking, it wasn't necessary that any of the victims actually speak before the judge since their written statements had already impacted the sentence. The point of today's statements was psychological, a kind of catharsis to rise, to speak, to say how they were wronged, how they hurt, how deeply they were impacted and how much they needed to know the system--as impersonal as it could be at times--actually gave a damn about their being victimized by the likes of Larry Maxwell.

Foster rose to speak and gave one of those speeches a man or woman might give once in a lifetime: this is who I am. This is what is important to me and how I became MYSELF. And this is how circumstances I did not seek out or deserve have almost crushed me, almost ground me into dust; and yet I stand here and I tell my story, I proclaim my EXISTANCE to the whole universe.

John Foster first made it clear he was the REAL John Foster, not some crackhead named Kingrussell with a stolen identity; a fact he felt needed to go in the record, first of all. He talked about how all his life he was raised to be independent, to work hard, to build wealth. At the age of 18, his father dropped him off to begin college. Foster was told not to ask for money from his father, and all his life he never did. During the first couple years of college he would save money by not eating on the weekends. His very first house was A DUMP, and yet he fixed it up, sold it, made a profit...bought ANOTHER house.

"I never bought toys," Foster said, "like a motorcycle." Instead, even at a young age, Foster worked at "building wealth" so he could retire. He didn't consider himself a brilliant man. He drives a delivery truck. The job is hard on the body and you don't continue working a job like that when you're old.

"This has totally destroyed everything I am about," Foster said. In his late 40s, he was forced--for the first time in his adult life--to ask for money from his father. Foster had been so obsessed with paying bills on time that "somebody could take out multiple homes" on his credit. The crackhead "imposter Foster" Kingrussell had cashed checks at, for example, a casino. The phone at the home at John Foster and his wife, Melony Michaels, would ring off the hook all day with people trying to collect money. They'd even call John Foster's SON.

Being an identity theft victim was an endless series of memorable humiliations. After shopping at J.C. Penny's for school supplies, Penny's wouldn't accept their own credit card because John Foster's credit was THAT BAD. John Foster now finds himself overloaded with bills, with no help to give his kids in college, no Christmas, no birthdays. Foster is forced to carry a "get out of jail free" card with a special password. He is the only person in the state of Minnesota in a special database of identity theft victims.

Interest, penalties, charages on outstanding bills now happen to John Foster CONSTANTLY.

"It's very expensive being broke," he noted, dryly.

To add to these insults and injuries, at first the authorities were of NO HELP AT ALL. His wife, Melony Michaels, hung up on the FBI because they were so rude to her. When they turned over a file of information to one local police department, the file was lost, leading to a months of delay.

At that moment, Detective Cardenas--seated behind me--leaned forward to whisper and point out it wasn't HIS department that lost the file in question, it wasn't the BLOOMINGTON Police Department that did THAT. For the record.

At the podium, continuing with his victim impact statement, as though reading Cardenas' mind at that moment, John Foster said "Detective Cardenas has come through in every possible way" and "ever since he got involved, things have moved forward." Foster also gave credit to Janet Havlish--the friend of Melony Michaels--who "played a key role in getting information loose" at an early point in the investigation. Foster said if everything had been left to him, John Foster, his life would have been "dead in the water" because he hates to "even make phone calls."

Foster expressed shock there were "so many crooked people involved." Foster was really warmed up, now. He was on a roll. Years of being Larry Maxwell's victim, years of being a social introvert were spurting out like bright red arterial blood. Foster said he didn't want Maxwell to "think about what he did wrong" but rather to "think about the wrong that he did."

"This is not a victimless crime," Foster said, near the end of his statement. "This is a nightmare."

In the spectator gallery, Janet Havlish whispered, "He hardly says 'boo' and now THIS!"

Judge Regina Chu--who took in this long, impassioned statement with focused attention--told Foster he had been "a model of financial responsibility and unfortunately that made you a target."

The whole time Foster gave his statement, I couldn't help but look over at one of Maxwell's family members. Her face did not appear to convey shame, or regret, or even frustration. I could only read her facial expression as smug and satisfied.

But, I wondered, why? Was it because Larry Maxwell's flim-flamming had finally caught up to him, as she figured it would? Was this expression the result of "inter family politics" and not related to the things John Foster was saying as part of his victim impact statement?

Or did this woman actually think somebody like responsible suburbanite John Foster deserved whatever he got, just because he didn't grow up in the same way as Larry Maxwell, down in Alabama? Honestly, that was the way I interepreted the look on her face, which was not passing and momentary but long and lingering.

Facial expressions are not a deep mystery. They can be read and interpreted, to some great degree. As a military psych tech, (91 Foxtrop, William Beaumont Army Medical Center, Fort Bliss, Texas) I was actually formally trained in the reading of "facial affect."

Well, sometimes you expect to see one kind of facial expression...but you see something completely different. You don't know how to explain it, exactly and precisely, but you know...it doesn't fit. It doesn't belong.

It is what the psych people call "inappropriate facial affect."

John Foster finished his victim impact statement. Maxwell and his family did not appear to be moved. But, then again, they weren't the ones deciding the prison sentence. In fact, the sentence had already been decided, its rational written down in black letters. John Foster could have approached the podium, burst into tears, emitted sounds like an injured duck, apologized, walked away...and the results would have been exactly the same.

The "max of the max" sentence hovered over Larry Maxwell, the number of years already decided and predestined. But The State--in its power and majesty, represented by Judge Regina Chu in a severe black judicial robe--doesn't just hand out a dramatic 16-year-sentence like issuing a drivers license. No, first there has to be drama, ceremony, RITUAL, even.

The daughter of Melony Michaels--a young woman whose college financing had been disrupted by Larry Maxwell's fraud committed against her parents--would be the next to testify.

To be continued...


Friday, August 14, 2009

JNS BLOG EXCLUSIVE: Larry Maxwell Gets "Max Of The Max" Sentence For Mortgage Fraud (Part 1 Of 4)






Two women sat upon one of the short, low, soft benches in the hallway outside Judge Chu's courtroom. They were apparently two of Larry Maxwell's daughters. One couldn't help but look at their nice clothing, their jewelry, their well-coifed hair and think: where did those resources come from?

The rumor among the anti-Maxwell crowd was this: Maxwell had fired his defense attorney, Larry Reed. Maxwell might be representing himself at this sentencing hearing...

But when the victims and their tight crowd of supporters entered the court room, Larry Reed was sitting at the defense table. Reed was looking no more and no less pensive and pissed off than usual, a lanky GQ fashion plate as usual. In the spectator gallery, Melonie Michaels--the spunky, spitfire wife of identity theft victim John Foster, the woman whose amatuer investigation ripped the lid off a massive snake pit of mortgage fraud--clutched a 10 page, handwritten document. It was her victim statement, written in a neat cursive. Even the capital letters, I noticed, were of modest size.

Others attending the "Larry Maxwell Send Off Party" included old and new faces: investigator Cory Cardenas from the Bloomington Police Department, another investigator who previously asked me not to photograph or identify him, Realtor Janet Havlish and her daughter, Jenna Havlish, and Melonie Michaels' daugher, Chelsea Michaels.

It was like "take your daughter to court day." Jenna runs her own spray-tanning business. Chelsea tries to get through college despite having her parents' credit wiped out. Both the daughters are lovely young women who looked out-of-place in the court room. On the other side sat Maxwell's family, one of whom was periodicaly "eye jacking" Cory Cardenas, according to Cardenas, seated right behind me.

"Does that mean giving you a mean look?" I asked, and Cardenas confirmed that's what "eye jacking" meant. I checked "urban dictionary dot com" later. Huh. Not there. I checked Google. Not there, at least not in the way Cardenas was using the phrase.

That Cardenas is creative.

Brannon Stephany, a court clerk, approached Larry Reed and prosecutor Brad Johnson to relay a request by Judge Chu to come back to chambers. Reed promptly announced he was not going back to chambers and would have "no conversation without Mr. Maxwell present." I couldn't help but notice how Reed managed to avoid words like "my client" or "representing."

Brad Johnson slid out of his chair with that little smirk of his and obediently followed Mr. Staphany back to chambers. Johnson had a blue suit and--my word!--shiny green tie the color of lime sherbet. The 7-week trial had been a 7-course dinner, but now sentencing was...

DESSERT!

"Who does he remind me of?" Jenna Havlish asked me. Havlish--a pretty, willowy young woman whose hair and dress appears calculated to highlight the benefits of spray tanning, who has an amazing coif of platinum hair, dark blond roots left unconcealed and Celtic red highlights on the ends--was doing that thing people ALWAYS seem to do with Brad Johnson.

He looks like somebody. Somebody in the movies. Who is it?

"That guy on the Princess Bride," I supplied, helpfully. "The one who gets into the battle of wits." And then I imitated, helpfully, "Never get into a battle of wits with a Sicilian!"

Oh, yes, Jenna agreed. Of course! She put one lovely hand to her mouth and laughed. Times like these I love being a blogger, though the pay sucks.

Word is that when Maxwell was sentenced, Melonie and her friends had a "spray tanning party" with (not very expensive) champagne, and crackers-n-cheese and a banner that said, "Bye Bye Maximum Maxwell."

In a little while, Mr. Stephany came back, stood directly in front of Mr. Reed, and relayed a message: Judge Chu was ORDERING Reed to come back to chambers. OR-DER-ING.

Reed rose without a word--surly yet completely obedient--and went back to speak with Judge Regina Chu on behalf of the client who had reportedly fired him.

The victims and their supporters were watching, LOVING this. Oh, please, their faces seemed to say, let Reed get fined for contempt of court AGAIN. Wouldn't that just make the day PERFECT?

During the wait, Melonie Michaels pulled out her victim impact statement and began adding more thoughts to the last page.

"She's sitting there being impacted RIGHT NOW," I said to Jenna. Over on the Maxwell side of the room, two women who seemed to be family members were taking notes, intensely. Another sat with what appeared to be a Dooney and Bourke purse of shiny leather, like a big delicious plum. Busty, with a low-cut dress, she wore a dark black jewel nestled in her ample cleavage; Cleopatra before everything went so very wrong with Mark Anthony, before the asp.

Deputies entered the room, a harbinger of The Evil One.

"He'll come out that little side door," I told Jenna. "He always comes from there."

I neglected to mention Maxwell would be rubbing his wrists, too, with a grimace of wounded dignity as though he had endured terrible jailhouse cruelties to his limbs but he was bearing up bravely just like Jesus Christ, not to worry.

When Maxwell appeared he was dressed in a blue suit--not the lavender "Joker" suit, too bad--with a fat, well-worn manilla envelope stuffed to the bursting point with papers. Maxwell sat next to Reed but there were no words exchanged and Reed did not even look up.

When Judge Chu entered the room, she immediately addressed Reed and Maxwell. Reed said Larry Maxwell "does not need my services" and had made that known. Reed said he showed up because of a motion recently served--a restraining order on the disposal or transfer of assets by Maxwell--and Reed was "not sure if Maxwell had seen it."

Chu asked Maxwell, "Have you discharged Reed? Do you intend to represent yourself?"

Maxwell said he did not WANT to represent himself, careful not to say whether he was ACTUALLY representing himself. Maxwell said he wanted an "agreed dissolution" with Reed. Chu pressed Maxwell, saying there were two choices: Reed could represent him, or he could represent himself. The option of delaying everything until a new lawyer could be appointed was not a choice placed before Larry Maxwell.

Reed asked for time to confer with Maxwell, and Chu agreed. Reed and Maxwell went off to the little room on the right, the "handcuff room." A moment later Reed walked out and a deputy said, "They want to go to eleven." Presumably this meant the 11th Floor, one floor above. Chu agreed. Victims, supporters and Maxwell's family members sat, waiting, with Cardenas getting "totally eye-jacked by Maxwell's people."

When Maxwell was ready to address the court again, he said, "I am not legally prepared to represent myself." He said it twice. Reed said "I was in agreement to withdraw" so now "I'm not prepared." Reed asked for a new sentencing date. "If required to go forward," Reed said, he would need "more time."

Chu asked, "Is it your wish to have Reed represent you at this hearing?" Maxwell answered without answering, refusing to be pinned down to a "yes" or "no" answer. Maxwell said, "No disrespect, I can respond but I can't answer yes or no." Chu told the defendant to respond with his response, then. Maxwell said, "I need an attorney, but I can't be represented by Larry Reed" and it was "mutually agreed we are not serving each others' best interests." However, Maxwell wouldn't answer directly whether Reed had been discharged.

Chu finally said, "To the extent Reed has made a motion to withdraw, that is DENIED. It's not clear whether that (motion) was made, but if it was, it's DENIED." Chu then said "under Rule 502" she was appointing Reed "advisory counsel."

"I deny the appointment," Reed said. Chu told Reed to proceed. In the midst of a magnificent stream of cloudy rhetoric, Maxwell declared Reed "did NOT indicate that he did NOT want an attorney." Reed proceeded to complain of "an allegation by the state that Maxwell hid a car." There had been, Reed said, "No opportunity to respond." Reed asked for time to "familiarize himself" with these matters because otherwise "you may as well just let me go."

Chu said the "forfeiture proceeding is separate" from this sentencing matter and she "forbid Maxwell to dispose of any assets for 10 days under the statute." After that, Chu said, there will be a determination pending a final hearing. Chu and Reed proceeded to get into a spat over whether an "ex parte proceeding is allowed." Reed spoke over the judge many times.

"Don't interrupt me Mr. Reed!" Chu said. And Reed interrupted her again.

With rising passion, Reed said, "I'm unprepared to go forward as to sentencing" yet he was "forced to stay as advisory counsel."

"Are we out for justice?" Maxwell argued. "Or just to get Larry Maxwell off the street?"

"Stop!" Chu said.

In the spectator gallery, victims and supporters looked at each other and agreed that "justice" had a wide area of overlap with "getting Larry Maxwell off the street."

To be continued...


JNS BLOG EXCLUSIVE: Larry Maxwell Sentencing Document, In PDF Form...


Short, sweet and oh-so-complete: here is the "max of the max" sentence ruling in the Larry Maxwell case, in PDF form, just click here for your very own copy!

More details of the sentencing to follow...

(Do not click "Read More")

Thursday, July 9, 2009

Marlon Pratt Mortgage Fraud Case--Bloggy List Of Properties (Summer Visitation 2009)

Photo By John Hoff, stock photo, my son with pages from my blog


The purpose of this post is to maintain a list of property addresses known to be involved with Marlon Pratt, who was recently convicted of 19 crimes revolving around mortgage fraud. So often the addresses are the key, and so here on this blog the addresses will reside so anybody searching for information may stumble upon this post and learn of the very interesting history of these houses. (Which, I hasten to point out, may still be a fantastic bargain in a rapidly-revitalizing neighborhood) If you want to research a property in Minneapolis, here is a great website to start your search, click here.


So, then, without further ado, here is the list...

First of all, here are the properties named in the criminal complaint against Marlon Pratt.

1108 57th Ave. N. (Brooklyn Center)
620 Penn Ave. N. (Minneapolis)
2501 Kyle Ave. N. (Golden Valley)
409 Logan Ave. N. (Minneapolis)
2622 Oliver Ave. N. (Minneapolis)
531 Knox Ave. N. (Mineapolis)
2205 10th Ave. S. (Minneapolis)
2118 Emerson Ave. N. (Minneapolis)
3000 Russell Ave. N. (Minneapolis)
3545 Penn Ave. N. (Minneapolis)
3331 Humboldt Ave. N. (Minneapolis)
2340 Sheridan Ave. N. (Minneapolis)
4122 Bryant Ave. N. (Minneapolis)
2947 Olver Ave. N. (Minneapolis)
3647 Colfax Ave. N. (Minneapolis)
3447 James Ave. N. (Minneapolis)
1411 16th Ave. N. (Minneapolis)

Further digging turned up some other properties NOT named in this indictment, but bearing some indications of involvement with the characters from the Universal Mortgage scandal. There is, of course, some possibility of duplicate names and these properties may NOT be involved. The comment thread is open for anybody who wants to say something about THAT, and I am open to feedback.

Here is the list, all from Minneapolis. The list is a couple years old and the situation with the properties may have changed as far as taxpayer and billpayer.

1316 Thomas Ave. N. Taxpayer Vince Barry. Billpayer Andre Bellfield.

1418 Thomas Ave. N. Taxpayer Kimberly Cordeel. (Sic) Billpayer Tracy Williams. ("Kimberly Cordeel" may be "Kimberly A. Cordell."

1240 Upton Ave. N. Taxpayer Kimberly A. Cordell, Billpayer Marlon Pratt.

2559 Broadway Ave. W. Taxpayer Patricia Jane Smith. Billpayer Donna Pratt and Patricia Jane Smith.

1919 Willow Ave. N. Taxpayer Irene Thomas.

2024 Queen Ave. N. Taxpayer Irene Thomas. Billpayer Donald Walthall.

1008 Russell Ave. N. Taxpayer and Billpayer Irene Thomas.

1906 Russell Ave. N. Taxpayer and Billpayer Donald Walthall.

1830 Dupont Ave. N. Taxpayer Andre Bellfield.

1806 Vincent Ave. N. Taxpayer Katherine Jones, Billpayer Marlon Pratt.

Anybody who cares to share information about Universal Mortage--especially stuff that is NOT in the court system in these rather extensive cases--feel free to share it right here.

JNS BLOG EDITORIAL: Told You So. Marlon Pratt Convicted Of Mortgage Fraud...(Summer Visitation 2009)

Photo By John Hoff

Mainstream media are reporting Marlon Pratt, formerly of Universal Mortgage, has been convicted of 17 counts of fraud and two other counts. Nobody is terribly surprised by this. The only person less surprised than me would be Marlon Pratt himself, who reportedly showed little reaction as the verdict was read.


But I'm not writing this editorial just to say "I told you so." There are two more important things which need to be said. First of all...

...the prosecutor's office needs more investigative resources to prosecute all this mortgage fraud. This trial, like Larry Maxwell's trial, went on for weeks. The expenditure of public resources is tremendous, but if we don't catch and convict all the mortgage fraudsters--including the "little fish"--then they will strike repeatedly and continue to hurt society and our neighborhoods.

When an "exotic dancer" in her 20s comes into possession of numerous houses, nothing good will come of THAT. We must catch and convict all these scummy, skanky fraudsters before their scams evolve in the way (for example) influenza has a tendency to mutate.

One hears rumors of "grants" which are in the offing to help police and prosecutors investigate mortgage fraud. To any public official involved in making this actually happen: FOR GOD'S SAKE, SPEED THIS AID FORWARD. Do not tarry, do not rest, even a single day may mean the difference between somebody being arrested versus slipping out of the grasp of justice.

Secondly, one can't help but wonder what indicted and accused mortgage fraudster Tynessia Snoddy is thinking right now. Hopefully, it is something along the lines of oh, god, is there some way I can still cut a deal with the prosecutor? Is there any way to convince a prosecutor that I, Tynessia Snoddy--somebody involved in real estate, somebody who "held the keys" in allegedly fraudulent transactions--was not as much of a bad actor as, for example, somebody who was given the trust and responsibility of, for example, a non-profit organization?

Gee, is there anybody like that I, Tynessia Snoddy, could roll over upon to save my sorry, criminally-indicted ass?

Thinking, thinking, thinking...

My dear readers, a believable little birdie told me Tynessia Snoddy was directly involved in the notorious deal at 1564 Hillside Ave. N. and, furthermore, birdie says the buyer and seller sat in separate rooms during the closing. The little birdie told me LOTS of things about who was in the room at the time.

Here's something else a little birdie told me, though it was a DIFFERENT little birdie:

Birdie was talking to me about why it is the authorities appear to prosecute some fraudsters, not others. The deal is prosecutions are initiated by police investigations, and police investigations are initiated by citizen complaints.

So if you have proof somebody participated in mortgage fraud, here's what you need to do: make a police report. Go talk to the police. Put the documents in front of police investigators.

No, SERIOUSLY.

Consider, if you will, the mortgage fraud prosecutions that have taken place involving houses in NoMi. In every instance, these prosecutions began when non-police, non-prosecutor "good citizen" individuals at the grassroots level tediously gathered and organized information, then pretty much TEDIOUSLY LOBBIED POLICE INVESTIGATIONS INTO EXISTANCE.

I think blogs can be helpful in this regard by disseminating emerging info and, also, facilitating discussion and organizing around emerging issues. Sure, bloggers can also dig stuff up themselves, but that's true of anybody. The power of the blogosphere is the ability to disseminate info plus allow anybody to jump into the public discussion, communicating their interest and involvement in the issue.

Having said that, it is my intention to create a list of properties known to be involved with Donald Pratt and his associates--including some not listed on the criminal complaint which I sort of stumbled upon--and to keep that list updated, exactly as I did with my list of T.J. Waconia properties. I've always felt addresses are the key, since the address can unlock all the OTHER information.

In summary, Pratt's conviction comes as no surprise. The unanswered questions are these: how much wider and how much more quickly can the prosecution net be cast, and what will poor, doomed Tynessia Snoddy do to save herself from an even longer prison sentence?

Thursday, July 2, 2009

JNS BLOG EXCLUSIVE: Fourteen Years Suggested For Mortgage Fraudster Larry Maxwell, His House Reportedly "Ransacked."

Photo By John Hoff

Melony Michaels, the wife of identity theft victim John Foster, called me today and provided Johnny Northside blog exclusive details about a hearing this morning for Larry Maxwell, who faces sentencing for 18 criminal convictions all related to mortgage fraud. The photo above shows Maxwell on the day of his conviction, a few hours before he was taken into custody.

The Maxwell scandal was blown wide open by Michaels' amateur investigation into the fraudulent sale of 1564 Hillside Ave. N., which involved the theft of her husband's identity. According to Micheals...

The hearing took place this morning before Judge Regina Chu. Michaels reported 6 or 7 individuals who looked like family members were present, and two of the family members--women in their late 20s or early 30s--actually GLARED at Michaels, as though she were the criminal instead of Larry Maxwell. Ironically, Michaels had rode the elevator with the women and had been about to tell one of them her rhinestone decorated shoes were cute, but Michaels' husband, John Foster, interrupted her train of thought at that moment.

Let the record reflect one of the individuals in the spectator section, believed to be a family member of Larry Maxwell, had cute shoes.

Maxwell himself had a cute outfit as well: an orange jumpsuit with orange socks. Maxwell's shoes were "sandal like" and beige.

Michaels reports both attorneys provided briefs to Judge Chu. The brief of prosecutor Brad Johnson was "half an inch thick." (It is my belief Liz Johnston may have worked on that brief)

The hearing centered on how racketeering should be "rated" for sentencing purposes. Racketeering is an "unrated" crime in Minnesota, so the judge has discretion. Brad Johnson was asking for 14 years, arguing for a rating of "10" which is the same as third degree murder. Maxwell's co-conspirator, Jerome L. Kingrussell, received a rating of 8 for acting as Maxwell's tool in the fraud. Maxwell was described as the "mastermind" of the fraud.

Johnson argued a rating of 10 made sense because three similar cases in Hennepin County were rated at a 9. These were mortgage fraud and racketeering cases but lacked the "underlying crimes" such as identity theft which was present in the Larry Maxwell case.

Chu inquired about sentencing only on racketeering, and merging all the other crimes. Johnson stated he would prefer to sentence on all 18, to be served concurrently. (At the same time)

Defense attorney Larry Reed argued Maxwell couldn't be compared with a murderer. Reed said a long sentence for Maxwell would produce too much "variation" between the co-conspirators, Kingrussell and Williams, who are both on probation and walking free. At one point, Reed argued for a ranking of 6, which would be less than the ranking of Kingrussell, the crackhead co-conspirator who could do NOTHING without Maxwell's sophistication and "keys" to the mortgage and real estate industry. 

In response to this, Johnson read Judge Cahill's order about 108 months hanging over Kingrussell's head. The only reason Kingrussell is walking free, Brad said (quoting Cahill) is because Kingrussell was cooperative in convicting the "mastermind" of these crimes, which was Larry Maxwell.

Johnson emphasized that Kingrussell got 108 months, yet Kingrussell wasn't anywhere near the level of Maxwell's "sophistication." (Evidence shows Kingrussell has battled with addiction to crack) Johnson said Maxwell was not apologetic or remorseful.

In response to this, Larry Reed argued Maxwell was "honorable" and showed up in court. Reed said Maxwell's house had been "ransacked" and "things had been stolen" because the judge had Maxwell taken away right after trial instead of letting him tidy up his affairs. Reed argued Maxwell should be let go for a brief time, since his grandma is "sick and on her deathbed."

Unknown if the allegedly sick grandma lives in Alabama. Prosecutors have consistently argued Maxwell is a flight risk.

According to Melony Michaels, during this discussion about (among other things) Maxwell's "sick grandma," Chu's face had a look like "I'm not buying this." Chu said Maxwell will remain in custody. Sentencing will take place Thursday, August 13, at 9 a.m. I am told John Foster will speak. Melony is debating whether she should speak, but appears to be strongly leaning that way. She is being urged by "everyone" to speak.

Prior to the sentencing date, prosecution and defense will submit further argument about sentencing and the merging of multiple sentences. Larry Reed said he didn't have enough time to prepare all the info he wanted to give to Judge Chu because of the ongoing Marlon Pratt case, which is expected to end "next Monday."

Sunday, June 14, 2009

Donald Walthall Takes The Stand In Marlon Pratt Mortgage Fraud Trial (Summer Visitation 2009)

Photo By John Hoff

On Friday, I ducked into the Marlon Pratt mortgage fraud trial for about 20 minutes, with my son in tow. I'd heard a rumor that Donald Walthall would be taking the stand, and delivering testimony which would pretty much lock the door of Marlon Pratt's prison cell. At about 4 PM, Donald Walthall was indeed on the stand...

Walthall appeared in an impossibly yellow shirt, singing like a canary about how he'd gone ahead and slapped his signature on loan documents when he had not really been the loan officer on those particular loans. Who was the loan officer? Marlon Pratt. According to the testimony, Pratt had been the LOAN OFFICER on loans where he himself was one of the BORROWERS. Talk about your one-stop banking!

The young female juror I call "Polka Dot Girl" elevated her eyebrows and wrote notes at this revelation. On Friday, she was wearing a gray and black striped outfit and seemed quite focused on the testimony.

Donald Walthall testified looking straight ahead at the prosecutor, in a cooperative tone which was mostly meek, though not servile. Walthall did not look toward Marlon Pratt while I observed. Pratt sat with his hand on his chin, wearing a grim look. He wore a conservative gray suit.

According to my 12-year-old son, Alex, some of Pratt's family appeared "nervous." My son saw "foot tapping" and "thumb twiddling" and one woman appeared to be "reading a Bible."

An individual sitting in the front row with the Pratt family bore an incredible resemblance to State Representative Bobby Joe Champion.

At one point, there was testimony about $23,000 which ended up in the hands of an entity called "Pratt Construction." You really have to wonder if "Pratt Construction" has ever put the business end of a hammer to the head of a nail. At one point, a picture of 4122 Bryant Ave. N. was displayed on the screen. At another point, the prosecutor asked Donald Walthall if he'd ever known Marlon's wife, Donna Pratt, to "live in a house this modest." The utterance was objected to by Larry Reed, and successfully. The judge appears to be very even-handed between defense and prosecution, but there is no doubt the testimony being delivered is damning.

Word around the courthouse is the prosecutor, Tom Fabel, is rather "old school" and doesn't rely much on modern devices to put evidence in front of juries. Indeed, a few days ago I saw Fabel presenting a handwritten diagram which actually had a little doodle of a house, like a stick figure man would live inside. However, it should be noted...the diagram was plenty enough to get the job done and certainly had no distracting flashy elements.

Fabel is ably assisted by Kirstin Kanski, who wore a blue suit jacket. Her hair is brown with blonde highlights, cut in a rather casual way. She is tall, pale, calm, apparently in her late 20s.

At one point during an expert's testimony some days ago, a list was projected of the sub prime lenders who were involved with Walthall's company, Universal Mortgage, and it was actually a roll call of the dead. Not a single one of the lenders was still around, each being out of business or in bankruptcy. Here is that morbid, dreary list:

Accredited Home Lenders, Inc.

BNC Mortgage, Inc.

Entrust Mortgage, Inc.

Decision One Mortgage Co.

1st Choice Mortgage

Argent Mortgage Company, LLC

Testimony a few days ago included a witness, Allison Stoehr of Title Nexus in Minnetonka, described as a "legal assistant." A brunette with nicely-permed hair, she appears to be in her early 30s. Another expert was Curtis D. Loewe, whose professional qualifications were so overwhelmingly impressive you had to wonder why he would be required to testify at all. Really, just have him say Marlon Pratt is guilty and let his resume do the convincing.

Loewe has--among a lot of other things--an extensive past career with the attorney general's office and many years of work in regulation. He eventually went to work for Hometown Mortgage, and has been an expert witness in a handful of other trials. Loewe--who doesn't appear at first glance to be as old as he actually must be--is a short, somewhat rotund man with receding hair and a hearing aid. At one point, he was told DO NOT state the names of the defendants in other trials where he has been a witness but, not understanding the question, Loewe blurted out the name "Walthall."

Notably, Larry Reed allowed this moment to pass without objection. Loewe proceeded to give a "history lesson" on the sub prime mortgage mess. These are the moments when "Polka Dot Girl" runs her pen over her lips and appears to be thinking about something much more interesting.

In response to questioning by Defense Attorney Larry Reed, Loewe answered that he currently works on 2 or 3 mortgages a month.

"Two or three a month?" Larry Reed asked, incredulous.

"Market's not as good this year," Loewe answered, which produced laughter in the spectator section but, notably, no laughter among the jurists.

At another point during a break in the proceedings, Larry Reed began to argue with the prosecutor about the order of witnesses. Fabel said the order of the witnesses would depend on how the witnesses responded to subpoenas, and added "you would know more than I would on that." Reed wanted to know WHY he would know more, and Fabel responded, "Because they're YOUR friends." Reed began to sputter out a response when the judge said, "Come into chambers" and both lawyers made a beeline out of the room.

At another point, Prosecutor Brad Johnson was in the room, sitting in the spectator section, fresh off his crushing defeat of Larry Reed in the Larry "Maximum" Maxwell trial.

Reed turned to Johnson and said, "Don't you have a little baby you could be playing with?" Brad answered he would have a chance to "play with her tonight" and asked, "Don't YOU have a little baby?"

"I have no babies," Reed answered.

"You have a granddaughter," Brad answered.

Reed was willing to concede the existence of a granddaughter.

Returning to Friday's proceedings, my son and I left after 20 minutes of testimony by Donald Walthall and went to Pizza Luce near the end of the light rail line, where he had a hot fudge sundae. My son, who is in advanced math classes, has quite a head for numbers and I know this means that, in his life, he may be presented with temptations involving the juggling of figures. Therefore, I thought it was good for my 12-year-old son to see an accused white collar criminal on trial, the family members virtually in a state of mourning, with one of the co-conspirators dressed in canary yellow, singing his birdie song.

Anyway...

Odds of Marlon Pratt beating the rap: 100 to 1.

Odds of Marlon Pratt's family member finishing reading "Extreme Faith" before this long, tedious trial finishes: much, much better than THAT.

Friday, May 22, 2009

Talk Of A "Conspiracy" In The Marlon Pratt Mortgage Fraud Trial, Larry Reed For The Defense...

Stock Photo By John Hoff

An inveterate courthouse observer was in attendance, today, at a hearing for Marlon Pratt, who is in waaaaay over his head in the Universal Mortgage fraud mess.

Larry Reed was there representing Pratt as his attorney. Reed was also the attorney for Larry "Maximum" Maxwell, convicted on 18 felonies related to mortgage fraud. Pratt was allegedly part of the different, separate "Universal Mortgage" fraud ring led by Donald Walthall, and I observed Pratt in in the court frequently during the Maxwell trail, watching his attorney in action. (You'd think Pratt would have copped a plea deal by now, considering how badly things went for Maxwell, but don't we ALL live on hope?)

According to my source, he walked in today just as...

the judge, The Honorable Steve Lange, was responding to an argument by Defense Counsel Larry Reed. The judge was reportedly speaking to Reed in a stern tone, "ripping Reed apart" according to my source, and being much more harsh with Reed than Judge Chu had been during the Maxwell trial. (And she was pretty harsh at the point she was declaring Reed in contempt, though her tone never went beyond "firm admonishment."

The judge in this case-- seemed "offended" according to my source, and the words which had offended the judge could be inferred from the judge's response. The word "conspiracy" was used. Apparently, Larry Reed had argued about there being a "conspiracy" against his client.

At some point, Larry Reed was forced to backpedal, and state he was, after all, only stating what his CLIENT felt. My source described Reed as "reeling" from the tongue lashing by Judge Lange.

Apparently, Judge Lange is retired and has his own arbitration practice, but comes out for really big and complex cases. Word is he has property in Arizona and splits his time between Arizona and Minnesota. He has a stellar reputation as a judge.

EDITORIAL REMARK DIRECTED AT MARLON PRATT: See my previous editorial on this subject. Can you not extrapolate and infer the way things will go for you, just based on how today's hearing went?

Beg for mercy from the prosecutor and cop some kind of plea. You will inevitably do several years in jail, but you will do LESS if you make the smart moves now. Don't make me blog about this months later and call you a dumb a**.