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January 04, 2007

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arewethereyet

Two attorneys "scammed"? Just how bad are you at real legal work? In the race, out of the race, it does not matter. You will fail...again.

Shields, husband indicted in mortgage fraud case

Former Jackson County Executive Katheryn Shields and her husband, Phil Cardarella, were indicted today in federal court in a mortgage fraud case.

Each is charged with one count of wire fraud and one count of conspiracy.

In addition, the federal grand jury returned indictments against nine other persons allegedly involved in the case.

The announcement, originally set for 3 p.m., came shortly after 6 p.m.

The indictments apparently involve efforts to sell a home the family owns in the Loose Park area of central Kansas City.

Shields and Cardarella, who both are lawyers, said they would meet with the media yet today to answer the allegations.

Earlier today, Cardarella said he “demanded to appear before the grand jury” but was denied that opportunity.

“They are only being given part of the story and not the whole truth,” he said.

http://www.kansascity.com/mld/kansascity/16385228.htm

arewethereyet

Shields,
I am helping you out at this time with a press statement. Use it in good health.

"Dear fellow Citizens,
I regret to inform you of my decision to cease pursuing my bid for Kansas City Mayor.
At this time in my career I am presented with a unique opportunity to take a break from public service and focus my attention on my family. They have been extremely supportive of my good works. I feel that they truly deserve the beneficence that I have squandered on the residents of Jackson County. Truly nothing in life is as fulfilling as family life. I wish you well."

... or some such nonsense as that. One shady deal too many.


Up2Late

"We was SCAMMED! We was DUPED! They play us for SAPS! We're the real VICTIMS!"

Yeah, right, Phil. Be a man (or as least as much of one as your wife) and just admit you got greedy and got caught.

She never ceases to amaze. Just what would it take to get her to quit the public life? It seems that no matter how much crapola might get piled up on her, she still comes out smelling like roses. Now, that's an amazing ability!

McFadden-Weaver thought of it first!

"Senator Callahan, can you come by and bring the white paint?"

Good grief!! And she really believes that we want her to lead our city gov't??? Does she realize the integrity, the morality, the honesty, the "stewardship" qualities that should be pre-requisites to this position??? Not to mention that it takes a pretty stupid bunch of "intellects" to try such a thing in the first place. Like with McFadden-weaver, when it comes to having such a responsible position as to make powerful decisions for the citizens--no thanks!! we'll pass on this one.

Linda Lou

I'm sorry, but as vile as she may or may not be, and I don't know either of them at all, it sounds like the govt. couldn't catch her doing anything officially wrong so they set her up on something trivial. It's one thing to do the fraud and it is discovered later (see McFadden-Weaver), but the FBI appears to have conceived and birthed this fraudulent transaction from beginning to end. (i.e., serving target letters at closing..."Uhh, here's one more paper for you") This looks like entrapment to me and the type of govt activity that juries find distasteful. This will be an interesting case to follow through the coming months.

So, who'll be first to pull the "George W. Bush's Justice Department is trying to set me up" card?

So, who'll be first to pull the "George W. Bush's Justice Department is trying to set me up" card?

Did anyone see her commercial on tonight? I saw it during the news on channel 5. It was really kinda funny. They reported the story about her indictment and then the commercial came on at the break.

I'll pull the "blame the internets" card on that doublepost

"So, who'll be first to pull the "George W. Bush's Justice Department is trying to set me up" card?"

I will. I haven't even followed this story about Shields but I would put NOTHING past Bush. Did you hear about his latest signing statement?

I heard about the Decider-in-Chief's high opinion of his powers. But, I'm not quite seeing how Bush is gonna try and target Katheryn Shields based off of his previous abuses of power.

Ward

"Shields, Cardarella, and others sign documents reflecting a sales price of $1.2 million (Cardarella claims some of the sales contract documents contained forged signatures)"

If some of the documents were forged, as he claims, why did they sign the documents at closing?

Nice try, Phil...

"so they set her up on something trivial" - Linda Lou

The outline of the alleged conspiracy:

1) Shields/Cardarella own a home near the Plaza they can't sell;

2) a broker offers to arrange a purchase of the home at their full asking price of roughly $700,000;

3) the broker arranges a $1.2 million appraisal/loan for the property;

4) at closing, he plans to pay the couple $700,000, the asking price, keeping the remaining $500,000 for himself and others as a "management fee" (after expenses, etc., the "management fee" was allegedly around $415,000);

5) at closing, Nov. 17, Shields, Cardarella, and others sign documents reflecting a sales price of $1.2 million (Cardarella claims some of the sales contract documents contained forged signatures);

Yes Linda, The EVIL FBI forced shields and cardarella to sign documents they KNEW were false and they are innocent victims in the whole thing!

THANKFULLY the grand jury was not as STUPID as you! If you can't see this for what it is worth, then I pity you.....

Linda Lou

thanks for calling me stupid. It's nice to have cordial discourse.

rasmmar

A witch hunt, huh? Well you would be "THE WITCH" to hunt! I am just a lowly citizen of Jackson County with some college but no degree. I have bought and sold a few homes, 1 without a realtor and never once have I been brought up on mortgage fraud. So the 2 of you being highly educated lawyers cannot understand closing documents and you want to run for mayor of Kansas City, MO. NO THANK YOU!

Well, a side story on all of this could be about how confusing closing sessions can be. The average citizen is presented a ton of documents to sign. Maybe this can lead to more simplified closings?

Brooksider

They could not get Al Capone on anything until he was caught in tax evasion. Same thing with Shields, they may not have gotten her on the other charges but she never stopped being who she really was, a dirty politican. As long as justice is served and she goe away.

Tiberius

Please note: the indictment alleges Carderella discussed the plan with the other parties before the documents were prepared. If true (because an indictment is just an allegation), this asertion demonstrates something much more than "I signed papers without reading them."

George Lopez

As someone who has worked in the mortgage business for 18 years, I can tell you this was not a sophisticated or well-thought out case of mortgage fraud. In fact, the FBI agents must've been scratching their heads and saying, "Nahhhh, it can't be this easy, can it?".

That the FBI agents "swooped in" as soon as the closing took place is proof in my mind that the FBI knew they had them cold.

Appraisal rigging is one of the most common forms of mortgage fraud. It's also very easy to spot, unless you have some help. You've got to have a corrupt appraiser, loan officer and escrow agent in your back pocket. The straw buyer is often times fictitious but they had a real breathing humanoid in this case.

What makes this case so obvious is the "management fee" of $415,000 that must've been listed on the Settlement Statement. There is simply no closing cost that can be listed as a "management fee" on a Settlement Statement and certainly not one as large as $415,000. Amazing!

Convicting Shields/Cardarella will not be as easy as convicting the other folks. There really isn't a law against getting a good price for your house, even a price as outrageously high as this one. The key will be getting the other conspirators to cooperate...and my guess is that the appraiser and loan officer will roll if they haven't already. Heck, they're 29 and 25 years old, respectively.

Even if they're not convicted, Shields/Carderella are certainly guilty of abject greed. The sales price, given the length of time the house has been on the market, doesn't even pass the laugh test. The fact that they are both intelligent, legally-trained individuals hurts them even more. Look for them to trot out the usual lineup of legal technicalities even as they beg for a speedy trial.

Chris Johnston

Perhaps the Cardarellas/Shields' can room with Adam Taff and Saundra McFadden-Weaver in prison!

Chris Johnston

And, once again moron blogzilla jack shows he cannot spell or put a coherent sentence together.

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