-
UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF TENNESSEE
AT KNOXVILLE
LNV CORPORATION, )
)
Plaintiff, )
)
v. ) No.: 3:12-CV-468-TAV-HBG
)
CATHERINE GEBHARDT )
)
Defendant. )
INTERVENERS MOTION FOR JUDICIAL NOTICE OF CRIMINAL INDICTMENT
AND CONVICTION BY JURY OF
JERRY D. KERLEY
Comes Now the Interveners, representing themselves, pursuant to
Rule 201 Judicial Notice of
Adjudicative Facts hereby requests this Court take Judicial
Notice of the documents described
herein and in support states as follows:
1. THE INTERVENERS move this Court to take judicial notice
of:
Superseding Indictment of JERRY D. KERLEY, United States of
America v. Jeffrey
Whaley and Jerry D. Kerley, Case No. 3:10-cr-169 (E.D. Tenn.)
(attached hereto as
Exhibit A.)
Judgment in the Criminal Case of JERRY D. KERLEY, United States
of America v.
Jeffrey Whaley and Jerry D. Kerley, Case No. 3:10-cr-169 (E.D.
Tenn.) (attached
hereto as Exhibit B.)
-
2. Under Federal Rule of Evidence 201 the court may judicially
notice a fact that is not
subject to reasonable dispute because it: (1) is generally known
within the trial courts
territorial jurisdiction; or (2) can be accurately and readily
determined from sources
whose accuracy cannot reasonably be questioned. The Court may
take judicial notice of
records of any court of record of the United States.
3. On June 6, 2013, Jerry D. Kerley, the owner of Guaranty Land
Title Company located at
204 Parkway, Sevierville, Tennessee, was found guilty by a jury
of his peers and
convicted in favor of the United States for the following
crimes:
Conspiracy to Commit Wire Fraud
Wire Fraud Affecting a Financial Institution
Bank Fraud
False Statements to a Financial Institution
Money Laundering
4. THE INTERVENERS moves this Court to take Judicial Notice of
Kerleys indictment
and conviction because these documents confirm that Kerely
engaged in a fraud scheme
involving mortgage transactions. GEBHARDT contends in her
pleadings that the deed of
trust and the adjustable note rider filed with the Sevier County
recorder are not the same
documents she signed at the closing of her mortgage. Kerely, on
behalf of his company,
Guaranty Land Title Company prepared the GEBHARDT loan
origination documents.
Kerely was present at the closing of the loan and did not sign
any document as a notary
because a notary was present who notarized them yet the
documents filed with the Sevier
-
County recorder are notarized by Kerely. These documents filed
with the Sevier County
recorder are not initialed by GEBHARDT whereas she had initialed
each page of the
documents she signed at closing. When GEBHARDT personally
obtained her origination
documents from Guaranty Land Title Company because her then
attorney Doug Taylor
refused to do so she discovered a loan application with her
signature that she had never
filled out. The information on this loan application was untrue
and gives GEBHARDT
genuine cause for concern about how many such loan applications
falsified by Kerley
were used and how. A title search uncovered a hidden and highly
suspicious assignment
that further clouds the chain of title. Several suspicious deeds
of trust and other land
records filed prior to GEBHARDTs purchase of the property may
implicate the seller,
Ron Sullivan, as a participant of a fraud scheme devised and
executed by Kerley and his
known accomplices or other accomplices, yet unknown.
5. Kerely was convicted of crimes he committed from about August
30, 2005 to about
March 9, 2006. His conviction of these specific crimes shows he
has the capacity and
propensity for committing such crimes; and that he was caught
committing them during
this time frame which in no way excludes the possibility that he
committed similar crimes
using similar means and methods earlier than 2005.
GEBHARDT also contends in her pleadings that she discovered
through an audit of her
origination documents prepared by a Certified Professional
Accountant that the broker
Joyce Linger and Kerley tacked an additional amount into the
loan above the purchase
price of the home that was not an amount she intended to borrow;
based on the crimes
and the manner and means identified in Kerelys criminal
indictment used to commit his
-
crimes it is highly probably that Kerley and/or Linger kept this
money after the loan
funded.
6. By way of background, Kerley was convicted of wire fraud, and
of knowingly and
willfully participating in a scheme and artifice to defraud and
to obtain money by means
of materially false and fraudulent pretenses, representations
and omissions and that for
purposes of executing such scheme and artifice he transferred by
wire in interstate
commerce, writings, signs and signals in violation of Title 18,
USC 1343, thereby
affecting a financial institution AND he used materially false
and fraudulent pretenses,
representations and omissions to fund and disburse mortgage
loans.
7. Kerley conspired with others in the commission of his crimes.
Kerely and those he
conspired with used materially false and fraudulent pretenses,
representations and
omissions to fund and disburse mortgage loans for other
borrowers (straw borrowers)
to purchase real properties and to obtain, for the personal
benefit of the co-conspirators, a
portion of the money loaned and disbursed to fund the straw
borrowers purchases of
the real properties. Kerley and his co-conspirators also
conspired that some fraudulent
real estate transactions involved straw, or nominee sellers and
they orchestrated
fraudulent transactions known as property flips where the
property would be resold at a
substantially higher price to an unsuspecting straw buyer.
8. A review of the land records and loan origination documents
shows it is highly probable
that Ron Sullivan was either knowingly or unknowingly a straw
seller and that
GEBHARDT was unknowingly used by Kerley and Linger as a straw
buyer and as
such she was deceived as to the risks, duties, or obligations
incurred.
-
9. The documents attached hereto as Exhibits A and B may be
accessed online from
PACER under United States of America v. Jeffrey Whaley and Jerry
D. Kerley, Case No.
3:10-cr-169 (E.D. Tenn.).
10. Timely written notice of this request is hereby given by
email and postal mail service
upon Plaintiffs counsel as required by law.
WHEREFORE, pursuant to Federal Rule of Evidence 201 THE
INTERVENERS move
this Court take Judicial Notice of the Information and
Conviction of Jerry Kerely and
unknown co-conspirators, United States of America v. Jeffrey
Whaley and Jerry D.
Kerley, Case No. 3:10-cr-169 (E.D. Tenn.) without hearing, and
for such other and
further relief as this Court deems just and proper under the
circumstances.
RESPECTFULLY SUBMITTED on this _____ day of May, 2014
THE INTERVENERS
__________________________________________________________________
DENISE SUBRAMANIAM as Representative for THE INTERVENERS
-
CERTIFICATE OF SERVICE
The undersigned hereby certifies that the copy of the foregoing
motion of the Interveners
has been forwarded by regular U.S. Mail upon the following:
Ronald G. Steen Jr. and
Kevin P. Hartley
STITES & HARBISON, PLLC
Sun Trust Plaza
401 Commerce Street
Suite 800
Nashville, Tennessee, 37219
SUBMITTED on this _____ day of May, 2014
__________________________________________________________________
DENISE SUBRAMANIAM as Representative for THE INTERVENERS