Lisa Simpson
Nov 12,2009
In: Foreclosure

Attorney General Filed Lawsuit Against Fiscal Officer for Mortgage Irregularities

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Two years previously Salineville fiscal officer Robert C. Roach and many others were sued by Marc Dann who was at that time the Attorney General. The allegation was transgression of consumer protection laws. Dann charged ten mortgage lenders for “unconscionable acts.”

After receiving tips over the Internet, investigations have been carried on by a newspaper to find out the involvement of Roach. It came to the knowledge that Roach is facing several ruling in Mahoning County Court relating to the foreclosure on his house from where his company, American Mortgage Advisors, functioned.

Dann brought the charge that Roach as the top official of the firm had violated the Consumer Sales Practices Act by “knowingly compensating, instructing, inducing, coercing or intimidating, or attempting (the same) a person licensed or certified (under Ohio Revised Code) for the purpose of corrupting or improperly influencing the independent judgment of the person with respect to the value of the dwelling offered as security for repayment of a mortgage loan.”

Placed in simple terms it means Roach resorted to “unfair and deceptive acts and practices.” He engaged an appraiser to give an estimate within a scheduled price range for an estate for which he himself was working as a loan broker.

As per the records of the court Roach faxed a message to an appraiser in St. Clairsville to “provide an estimated value range for the following property… the value range anticipated by our office is $59,000 to $65,000. Please advice if this is accurate for a home in average condition in that area.” The legal suit also stated, “It is likely (he) has communicated the desired appraisal valuation of this and other properties to other licensed appraisers.”

Dann charged that Roach had attempted to influence the judgment of appraisers regarding the true value of a residential unit. This may have cause inflated appraisals that ultimately harmed the consumers of Ohio.

Dann wanted that each of the 10 firms that was being sued to pay a minimum of $25,000 and be banned from continuing with this line of business henceforth. The legal suit also asked Roach to maintain all business records for five years so that within a short notice of 24 hours the office of the Attorney General could inspect the same.

Among the customers of Roach was Tim LaClair the chief of police of the village. His mortgage loan on his house had originated from the firm of Roach.

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