Adam Taff Indicted In Mortgage Deal
Prosecutors Allege Taff Used Funds From Campaign Accounts
POSTED: 2:21 pm CDT August 17,
2005
UPDATED: 3:13 pm CDT August 17,
2005
KANSAS CITY, Kan. -- Former Kansas congressional candidate Adam Taff was indicted Wednesday on charges of converting political campaign contributions for his personal use and wire fraud in a deal to buy a home at Lake Quivira, Kan.
Taff, 40, of Lake Quivira, Kan., and John D. Myers, 48, of Leawood, Kan., are charged with one count of wire fraud. Taff is also charged with one count of violating the Federal Election Campaign Act.
Read The Indictment
Taff was a candidate for the U.S. House of Representatives from the 3rd District of Kansas.According to the indictment, Taff and Myers devised a scheme to allow Taff to fraudulently get a mortgage to buy Myers' house for $1.2 million. Federal prosecutors allege Taff and Myers filed false paperwork to NovaStar Home Mortgage, Inc., indicating Taff had made a $300,000 down payment on the house when he had not.Details of the indictment state that on Jan. 19, 2004, Taff met with a NovaStar agent and signed a loan application, which showed two accounts at Metcalf Bank in his personal assets. Prosecutors said that the accounts were actually his campaign committee's accounts.In February 2004, authorities said that Taff withdrew money from his two campaign committee accounts at Metcalf Bank and had a $300,000 bank check made payable to Myers and his wife. When the check was presented to the closing agent at a title company, a copy of the check was altered by the closing agent to make it appear that the check was made payable to the title company. The agent sent a closing statement to NovaStar, signed by Taff and Myers, falsely stating that Taff had paid $300,000 to the title company for distribution to Myers. Prosecutors said that Taff actually took the $300,000 check back and returned the money to his campaign accounts.The second part of the indictment alleges that Taff violated the Federal Election Campaign Act by using contributions and donations to Taff for Congress to get the $300,000 check that was part of the mortgage deal.If convicted, Taff and Myers face up to 30 years in federal prison and a fine up to $1 million on the wire fraud charge. Taff also faces up to five years in prison and a fine up to $250,000 on the charge of converting campaign funds.
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Taff was a candidate for the U.S. House of Representatives from the 3rd District of Kansas.According to the indictment, Taff and Myers devised a scheme to allow Taff to fraudulently get a mortgage to buy Myers' house for $1.2 million. Federal prosecutors allege Taff and Myers filed false paperwork to NovaStar Home Mortgage, Inc., indicating Taff had made a $300,000 down payment on the house when he had not.Details of the indictment state that on Jan. 19, 2004, Taff met with a NovaStar agent and signed a loan application, which showed two accounts at Metcalf Bank in his personal assets. Prosecutors said that the accounts were actually his campaign committee's accounts.In February 2004, authorities said that Taff withdrew money from his two campaign committee accounts at Metcalf Bank and had a $300,000 bank check made payable to Myers and his wife. When the check was presented to the closing agent at a title company, a copy of the check was altered by the closing agent to make it appear that the check was made payable to the title company. The agent sent a closing statement to NovaStar, signed by Taff and Myers, falsely stating that Taff had paid $300,000 to the title company for distribution to Myers. Prosecutors said that Taff actually took the $300,000 check back and returned the money to his campaign accounts.The second part of the indictment alleges that Taff violated the Federal Election Campaign Act by using contributions and donations to Taff for Congress to get the $300,000 check that was part of the mortgage deal.If convicted, Taff and Myers face up to 30 years in federal prison and a fine up to $1 million on the wire fraud charge. Taff also faces up to five years in prison and a fine up to $250,000 on the charge of converting campaign funds.
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