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Show Friday, 1. August DAILY 2008 Fraud Continued from B5 superseding indictment filed earlier this month, those charges were expanded to five counts of mail fraud and 13 counts of wire fraud. The defendants were accused of racing in millions of dollars by falsely inflating the value of several homes in the Riverbottoms area, recruiting agreement, said Kitchen had introduced to him in December 2005 the idea of using "investment buyers" to flip what he de- scribed as "undervalued" homes in the Riverbottoms area and to "capitalize on the then current upswing in real estate value." "The profits would be shared between Kitchen, myself and the investment buyer. The proceeds from these transactions g would be used to buy assets," Bolick said. "The funds involved in these transactions passed through Paragon Investment Group and Home Owners Group both of which are Bolick s companies." Bolick said he recruited Frank Spangler, a straw buyer, who purchased two Riverbottoms properties at 259 W. Stone Brook Lane , and 4311 North Vintage Drive from Home Owners for about double the price contracted by the company. Bolick said he and Kitchen "participated in supplementing Spangler's loan applications with false and misleading income-producin- straw buyers to dupe mortgage lenders into granting loans for amounts in excess of their fair market value, and then pocketing the difference. Like Kitchen, Bolick now faces a statutory maximum sentence of up to 20 years in prison and a fine of $250,000. The U.S. Attorney's Office also seeks to forfeit $7 million jointly from Kitchen, Bolick, Cloward, Clark and Garrett. k A trial on the remainder of the case will start on Aug. 13 and will be held before U.S. District Judge Ted Stewart. Bolick, in Thursday's plea five-wee- HERALD BS Exxon verifications of deposits into his bank account and false documents pertaining to assets." "The purchase money loans obtained by Spangler involved the use of false and deceptive statements to lenders concerning his qualification! e.g. occupancy, income and assets," Owners and used to "pay salaries, commissions and fees" to the defendants, fund other property acquisitions and business ventures, and also make loan payments on the Riverbottoms homes. Over time, mortgage payments on the properties stopped, resulting in their Bolick said. foreclosure, Bolick said. Bolick said he caused $1.94 Even though the mortgage million in mortgage loan funds scheme targeted between 20 for Spangler's straw purchase and 30 homes in the Riverbotof the Stone Brook Lane proptoms area, ultimately it affected the valuations of 550 homes erty to be wired from a bank outside of Utah to Precision because the scheme artificially Title's account at Capital Com- inflated all home prices in the area, according to the Utah munity Bank in Orem. The final loan packages were County Assessor's office. Of the 550 affected homes, then submitted by Precision Title to loan underwriters for 460 had to have their property valuations adjusted in NovemAmerica's Wholesale Lender ber 2007. That took place after and American Broker's Con200 residents in the Riverduit, according to court docubottoms area appealed their ments. Those" closings were structured so that loan proceeds property tax valuations, which to the straw buyers would be skyrocketed between 50 perused to close Home Owners' ac- cent and 100 percent in just one quisition of the property as well year.; The property valuations of most homes in other parts of as that of the straw buyers. Provo were up only 20 percent The flip transactions yielded loan proceeds that were divertby comparison, said Utah Couned to Paragon and Home ty Assessor Kris Poulson. lent basis fell 8 percent from a year ago a significant blow for a company that geners ates more than of its earnings from oil and gas production. That follows an opening quarter of 2008 when the company said overall production fell 5.6 percent from a year ago. Excluding last year's loss of its Venezuelan assets, a labor strike in Nigeria and lower volumes because of production-sharin- g contracts, Exxon said production was down about 3 percent in the most recent quarter. Like its competitors, Exxon Mobil said it took a beating from lower global refining margins. Earnings from refining and marketing fell 54 percent in the quarter to Continued from B5 two-third- Exxon MobiL The $11.68 billion topped its own U.S. record of $11.66 billion, posted in the fourth quarter of last year. Right behind that was the $10.9 billion it reported to start 2008. Exxon Mobil owns the record for at least the top six most profitable quarters for a U.S. company, as well as the largest annual profit. The company, which produces 3 percent of the world's oil, got its biggest boost from its exploration and production arm, where earnings rose 68 percent to $10.01 billion from $5.95 billion a year ago. The main driver was record $1.55 billion. For the first six months crude prices, partially offset of 2008, Exxon Mobil said jt, by lower sales volumes and t earned $22.57 billion, or $125 higher operating costs. a share, from $19.54 billion, Again, Exxon Mobil's results revealed a troubling or $3.45 a share, in the first half of 2007. Revenue rose trend at the heart of its business. to $254.9 billion from Production on an $185.5 billion. Irving-base- d Nu Skin Among his most recent responsibilities, Nelson has served as the company's vice president Continued from B5 of global distributor support which was demonstrated by 31 and was president of the percent growth in our personal Southeast Asia region. Luke Yoo was appointed care brand and continued stability in our nutrition line," said regional vice president of the Truman Hunt, president and North Asia region and will also chief executive officer. continue in his role as president and general manager of "Moreover, as the world's economic situation remains rel- the company's South Korea atively unstable, we are seeing business. Yoo joined Nu Skin more and more people looking South Korea in 1999 and has at our business opportunity as served as president and genera source of supplemental or re- al manager of Nu Skin's South Korea operations since 2003. placement income," he said. The company now expects, Ryan Napierski was aprevenues of bepointed vice president of busitween $305 million and $310 ness development for North Asia. Napierski was recently million, and its earning? per share to be in the 30-- and appointed vice president of business development for Nu range. Hunt reiterated the comSkin Japan. pany's focus on improving its Gary Sumihiro will continue business in Japan. in his role as president of Nu The company named Brett Skin Japan. Sumihiro has Nelson president of the North served as president of the marAsia region. He will relocate ket since April 2007 and has from Nu Skin's Provo corponearly 20 years of experience in the direct selling industry. rate headquarters to Japan. 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