Appraiser says he never intentionally created a misleading report
| Monday, Jan 25 2010 07:48 PM
Last Updated Monday, Jan 25 2010 07:54 PM
LOS ANGELES -- Appraiser Kirksey J. "Mark" Newton Jr., who is fighting to keep his appraiser's license, on Monday defended his choices in the inexact art of estimating home values, and blasted the media and regulatory authorities for dragging him into the "frenzy" over mortgage fraud allegations against disgraced former real estate agents David Crisp and Carl Cole.
The California Office of Real Estate Appraisers is attempting to revoke Newton's license after scrutinizing eight property appraisals he either performed or signed off on, including work done for Tower lending, the mortgage brokerage arm of Crisp, Cole & Associates.
Taking the stand for the first time in a hearing that began two weeks ago, Newton said that in 2005 and 2006 he didn't know anything about the alleged activities that triggered a federal investigation into Crisp and Cole, and never intentionally created a misleading appraisal report. The state contends Newton's property valuations were derived from information about sales that were not comparable to the property being examined.
Newton insisted that with the exception of some minor errors that did not affect the ultimate valuation, he stood by all but two of the reports prepared by his company, Bakersfield-based San Joaquin Appraisals.
"Knowing what you know now, including this investigation, would you do anything differently?" defense attorney Ernest Price asked.
"No," Newton replied.
The two exceptions were appraisals of 1902 Heaton St. and 1914 Three Bridges Way, both in Bakersfield. Newton testified that he did not review or sign off on those reports, even though they bear his signature. At least eight subordinates had access to a computer code that allowed them to affix Newton's electronic signature to documents, he said, and one of them, Jaron Parks, was terminated for "manipulating" reports.
Parks was not present at the Office of Administrative Hearings courtroom in Los Angeles, and could not be reached for comment.
The report on the Heaton Street house suggested a valuation of $910,000 in 2006, but did not explain why that figure was 87 percent higher than a February 2004 sale price of $487,500, according to the state's official accusation. Another report valued the 10,454-square-foot Three Bridges Way property at $785,000 in 2006 based in part on a sale identified as comparable even though the other property was 40 percent larger.
California Deputy Attorney General Gillian Friedman asked Newton when he learned that his name had supposedly been affixed to documents without his approval.
"After Sept. 12, 2007, I went through my files and discovered them," Newton said.
In 2007, the FBI and IRS raided 13 local sites associated with Crisp & Cole, including Newton's office.
When Friedman asked what Newton did after learning about the alleged misuse of his name, he replied that he said nothing to William Drabick, senior property appraiser and investigator for the state.
"I wanted Mr. Drabick to do his own investigation," he said. "It was a frenzy. The media went crazy. It would have been like saying the dog ate my homework."
The hearing continues Tuesday in Los Angeles.
