Cheaters Among Us, Pat Riley

What are the foxes doing in charge of the hen house?

According to the First Horizon Home Loans web site, Patrick Riley is their Vice-President. According to Reno Justice Court and Washoe County District Court public records, Mr. Riley and his long time assistant, loan officer Chris Laxague , along with their long time Senior Processor and Level IV Underwriter, Cherie, knowingly did the fraudulent loan for Robert and Jonna King .

Real estate appraisers have been increasingly accused by the home loan lenders for “inflating” real estate values in their appraisals that the lenders relied upon. According to several local appraisers, who asked for anonymity so the lenders don’t blacklist them , Cherie’s practice was to tell the appraiser how the appraisals were to come in upon threat of never again using that appraiser. That included that the appraiser better not check that declining market box if they ever wanted to appraise another First Horizon home loan. That included the value of the house. That included the condition of the house. That included ignoring a tenant in the property or planned to be when the loan was being done as an owner-occupant or a second home. That included ignoring that parents were taking out an owner-occupant or a second home loan that a child was really to live in. That included ignoring a silent Second mortgage on the property. That included ignoring a silent or recorded Second mortgage on the property that was to be forgiven after close of escrow. That included ignoring cash back to the buyer from the seller.

According to the Washoe County public records, First Horizon did hundreds of loans that were for rental properties that they knew were not owner occupied and had owner occupant or Second Home Rider restrictions on them. First Horizon, although Wells Fargo had notified them of the fraud, still did the fraudulent loan for the King’s property at 2745 Snow Partridge Dr., Reno, NV 89523 .

According to these several local appraisers, First Horizon’s practice of black-list threats and bullying to the appraisers was all the lenders’ practices: Countrywide, Bank of America, Wells Fargo, US Bank, Washington Mutual, Colonial Bank, Great Basin Credit Union, Greater Nevada Credit Union, etc.
These several local appraisers also said it was the practice of the Realtors to threaten them with black-listing if the appraisal came in less or had conditions on it or a tenant issue was disclosed: Prudential Nevada Realty, Coldwell Banker, ReMax, RemCor, Ferrari-Lund, Dickson, Keller-Williams, Assist-2-Sell, Help-U-Sell, ERA, Realty Executives, Stefani & Associate, and Realty Services, were mentioned. Realtors Keith Gledhill , Michael Reynolds, Don Travis, Valerie Mapes , Ed Lord, Donna Reimer, Allan Zane , Magi Bird, David Wiggins, Rich Welsh, Rodney Moser, Jeff Geisler, Alysmae Quinton, Dan Muncy, Pat Schroder, Laura Sperry, Curry Jamison, David Kahan , Patty Hopson , and Darrel Plummer’s names were mentioned for their threats and bullying to appraisers to “make the deal no matter what.”

Several of these local appraisers said that they finally complained to the Reno-Sparks Association of Realtors as they felt the threats and bullying had escalated into Realtor Code of Ethics violations. The Associations’ attorney, one Melody Lutkenhans, told several the threats of blacklisting and bullying to “make the deal no matter what” were “just puffing.” Ben Scheible , another attorney with compromised ethics, brought her in and she now teaches her suspect interpretation of Realtor ethics and agency law at Truckee Meadows Community College. Ms. Lutkenhans is also an instructor with Ben C. Scheible Seminars that are a direct conflict of interest for Mr. Scheible and Ms. Lutkenhans legal ethics and fiduciary duties to Truckee Meadows Community College and the community.

Same for the appraiser’s complaints to the Nevada Real Estate Division for NRS 645 violations. Same for their complaints to the Nevada Mortgage Division, specifically then Commissioner Scott Bice and Sheila Walthers. Ms. Walthers is still with the Nevada Mortgage Division. Several appraisers mentioned their suspicion that bribes had been offered and accepted to quash their complaints. Something Realtor Bonnie Wilson has also put forth she believes happened with Countrywide manager Sue Barry in her several fraudulent loans for John and Kay Sickler as Ms. Walther did not open an investigation nor turn it in to the Nevada Attorney General or FBI as required. Something that has also been suggested with Keith Gledhill as Ms. Walther did the same with the complaints against Mr. Gledhill and she quashed the Nevada Real Estate Division’s investigation of Mr. Gledhill.

According to several Realtors, loan officers, escrow officers, and appraisers, rumors have been floating around for years that Mr. Gledhill bought Home Depot gift cards that he gave to people such as Commissioner Bice, Ms. Walther and Judge Stephen Elliott so that he could deduct the card purchases on his income taxes. A cash bribe is not deductible. Keith and Jennifer Gledhill can claim a Home Depot gift card as a rental expense deduction on Schedule E of their Federal income tax return. One is corruption of public officials and the other is Federal income tax fraud. Because of the RICO statutes, racketeering is involved. So also is RESPA.

Judge Elliott failed to dismiss himself in a court case that he had a colossal and very public conflict of interest with. The case was that of Keith W. Gledhill. Although the law clearly has, and has had in Nevada for almost a 100 years, that the losing party must pay the winning parties legal fees and costs, Judge Elliott, after it was rumored, accepted Home Depot gift cards from Mr. Gledhill, did not excuse himself for his conflict of interest, and ruled that Mr. Gledhill, who had lost in Judge Salcedo’s court, and on appeal, did not have to follow the law and pay the prevailing parties legal fees and costs.

Judge Elliott’s wife, Mendy Elliott , who was with Rick Vaughan and Beverly Stewart at Wells Fargo, is now in charge of the State of Nevada Business and Industry Department. Like putting a fox in charge of the hen house.
Sources are the Washoe County public records, the Washoe County public records , Multiple Listing Service , Reno Gazette Journal rental ads, Prudential Nevada Realty house flyers, Freddie Mac , Fannie Mae , HUD , VA , United States Code , NRS 645 , NAC 645 , Realtors Code of Ethics , Reno Justice Court , Washoe County District Court public records, Sparks Justice Court public records, United States Code, and several local appraisers.