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Case 3:08-cr-00153-L Document 666-1 Filed 07/06/11 of 9 PageID 9566

IN THE UNITED STATES DISTRICT COURT

FOR THE NORTHERN DISTRICT OF TEXAS

DALLAS DIVISION

UNITED STATES OF AMERICA §

§

v. §

§

ERIC RULACKFARRINGTON JR. (1) §

No.3:08-CR-153-L

AFFIDAVIT OF SPECIAL AGENT STACY R. BANKS

Affiant, StacyR. Banks, upon being duly sworn, declare and say the following istrue based upon my personal knowledge and belief:

INTRODUCTION

1. I am a Special Agent of the Federal Bureau of Investigation (FBI), United States

Department of Justice, and have been employed as such for approximately six years. I

have been assigned to the Dallas Division for approximately three years and was assigned

to the Kansas City Division for three years. I have investigatedwhite collar crime

matters, as well as major financial fraud violations resulting from violations ofTitle 18 of

the United States Code. I have been the lead case agent for several large mortgage fraud

investigations which have resulted in numerous indictments and convictions.

2. The statements contained in this Affidavit are based on information obtained

through interviews, the examination ofpublic records relating to real estate and mortgage

transactions, the analysis of bank records, and onmy experience and training as a Special

Agent.

STATUTORYVIOLATIONS

3. On the basis ofmy investigation, set forth in detail below, I submit that there is

probable cause to believe that Eric Rulack Farrington Jr., aided and abetted by others,

presently unknown, has committed violations ofTitle 18, United States Code, Section,

Section 1341 (Mail Fraud).

Affidavit - Page 1




The Scheme and Artifice

4. From in or about December 2010, and continuing to on or about July 5,2011, in the

Dallas Division of the Northern District of Texas, Eric Rulack Farrington Jr., did unlawfully and

knowingly devise, and intend to devise, a scheme and artifice to defraud and to obtain money and

property bymeans of false and fraudulent pretenses, representations, and promises, from JesusSalinas Garcia, JohnManning, and GreenPoint Mortgage Co.

It was part of the scheme and artifice that Farringtonwould and did:

(a) attempt to sell real property owned by Kimara Enterprises LLC (Kimara) ,

namely commercial real property located at 204 SE 2nd Street, Grand Prairie,

Texas 75051 (the property), to Jesus Salinas Garcia, knowing that the

propertywas about be foreclosed on by GreenPoint Mortgage Co., which

had a val id deed of lien on said property;

(b) attempt to defeat the interest of John Manning, president ofKimara, in

said property, by concealing transactions involving said property from

Manning and causing documents containing Manning's forged signature to

be presented to Jesus Salinas Garcia and Wells Fargo Bank, N.A.; and

(c) attempt to defeat the lien ofGreenPoint Mortgage Co. by submitting a

letter purporting to claim that Greenpoint Mortgage Co.'s interest in the

propertywas being purchased by a third party.

PROBABLE CAUSE

A. Background

4. Eric Rulack Farrington Jr. (Farrington) was convicted by a jury on April 5,

2010, of conspiracy and multiple counts ofwire fraud, money laundering, and engaging

in a monetary transaction with criminally derived property related to a mortgage fraud

investigation conducted by the FBI and the Internal Revenue Service Criminal

Investigation Division.

5.James Edward Jones was convicted

bythe same

juryon April 5, 2010,

of

multiple counts ofwire fraud related to a mortgage fraud investigation conducted by the

FBI and the Internal Revenue Service Criminal Investigation Division.

6. On April 25, 2007, a Certificate ofFormation for Kimara Enterprises, LLC was

filed with the Office of the Secretary of State ofTexas on April 25, 2007. The Certificate

Affidavit - Page 2




reported John H. Manning as the onlymember of the LLC and as the governing person.

7. On June 25, 2007, Jones sold real property located at 204 SE 2nd Street, Grand

Prairie, Texas 75051 (the property) to Kimara Enterprises, LLC. On the same date, John

H. Manning, as the President ofKimara Enterprises, LLC, signed a Deed ofTrust with

GreenPoint Mortgage Funding, Inc. to secure a $656,250 mortgage for the purchase of

the property. Manning, as the President ofKimara Enterprises, LLC, also signed a Deed

ofTrust with Jones to secure a $131,250 note for the property on the same date.

8. On June 7, 2011, the propertywas foreclosed by a Trustee for the lender and

sold on the courthouse steps.

B. Current Investigation

9. On June 7, 2011, the FBI received a telephonic complaint from Aroldo

Longoria, a real estate agent, alleging that his client lost $38,000 in earnest money on a

commercial real estate contract that was being negotiated by Farrington for the seller of

204 SE 2nd Street, Grand Prairie, Texas 75051.

10. In June of 2011, I spoke with Aroldo Longoria ofGrand Prairie, Texas.

Longoria is a licensed real estate agent in the State ofTexas who providedme with copies

of real estate contracts, a Federal Express airbill, and other documents, and told me that:

(a) In December of2010, Longoria approached Farrington while Farrington

was cutting the grass at the property. Longoria's client, Jesus Salinas

Garcia, was interested in purchasing the property. Farrington advised

Longoria that he was a part owner of the property. Longoria drafted a sales

contract for Salinas to purchase the property and gave it to Farrington.

(b) When Longoria suggested a title company in Grand Prairie to close the

sale, Farrington insisted on utilizing Platinum Title Partners LP in Houston,

Texas to close the sales transaction.

(c) Longoria's client, Salinas Garcia, paid earnest money totaling $38,000 in

three increments because Farrington asked for more earnest money when

the contractwas extended. Farrington told Longoria that he owed money to

the bank for the property, but that the earnest money would prevent the

bank from foreclosing on the property.

(d) Longoria's wife, Elizabeth Longoria, saw Farrington and three other

Affidavit - Page 3




at Platinum Title Partners received the contract and $10,000 earnest money

on March 9, 2011.

(c) A contract amendment concerning the property, effective March 28,

2011, changed the sales price to $380,000 and extended the closing date of

the sale to May 31, 2011. The amendment was purported to be signed by

Manning and was signed by Salinas Garcia on March 28,2011. The

amendment also reported that the buyer paid the seller additional earnest

money of $18,000. The buyer wrote a check in the amount of $18,000

dated March 31, 2011 to Platinum Title Partners.

(d) A letter dated April 19, 2011, was provided to Longoria. The letter was

from John W. McCrary, 14758 Oak BendDrive, Houston, Texas and

reported that McCrary had acquired Kimara Enterprises' Promissory Note to

GreenPoint Mortgage Funding to facilitate the sale of the property.

(f) On April 21, 2011, Longoria sent Salinas Garcia's check for $18,000,

payable to the order ofPlatinum Title Partners, to Kathleen Martin,

Platinum Title Partners, 5325 Katy Freeway, Suite 2, Houston, Texas

77007, via Federal Express, an interstate common carrier.

(g) An undated document titledRelease ofEarnestMoney instructing

Platinum Title Partners, LP to release $38,000 to Kimara Enterprises, LLC

is purportedly signed byManning and Salinas Garcia. There is no date on

this document.

12. In June and July of2011, I spoke with John H. Manning who told me that:

(a) Farrington approachedManning about purchasing the property in 2006

or 2007. Manning formed Kimara Enterprises, LLC solely for the purpose

ofpurchasing the property. Manning was the president and Farrington was

the Vice President ofKimara Enterprises, LLC. However, Manning did not

know that Farrington was not listed on any paperwork filed with the State

ofTexas as a member or Vice President ofKimara Enterprises, LLC.

(b) Farrington has informedManning that he is attempting to sell the

property. Manning did not give Farrington permission to sign Manning's

name to any documents. Manning did not think Farrington would need to

sign Manning's name to any documents related to Kimara Enterprises, LLC

because Farrington could sign his own name as Vice President.

Affidavit - Page 5




Affidavit - Page 6

(c) Farrington told Manning he reinstated Kimara Enterprises, LLC with the

State ofTexas. Farrington also told Manning he opened a bank account in

the name ofKimara Enterprises, LLC at Wells Fargo Bank.

(d) Manning has been living in the U.S. Virgin Islands since January 2011

and has not been to Dallas, Texas since that time.

(e) Manning had never seen the document described in paragraph 11 (b)

before I faxed it to him. Manning did not sign his name on the document

described in paragraph 11 (b).

(f) Manning had never seen the document described in paragraph 11 (d)


described in paragraph 11 (d).

(g) Manning had never seen the document described in paragraph 11 (g)


described in paragraph 11(g).

(h) Manning had never seen the Application for Reinstatement and Request

to Set Aside Tax Forfeiture for Kimara Enterprises, LLC filed in the Office

of the Secretary of State ofTexas on March 28, 2011. Manning did not

sign his name on the document.

(i) Manning had never seen a document titledBanking Resolution which

reported that Farrington was a Vice President and authorized person that

was provided to Wells Fargo Bank, N.A., to open a bank account onApril

28,2011 in the name ofKimara Enterprises, LLC at a Wells Fargo Bank,

N.A. branch in Dallas, Texas. Manning did not sign his name on the

document which was dated April 25, 2011.

(j) Manning had never seen a document titledMinutes of the Organizational

Meeting ofThe Board ofDirectors ofKimara Enterprises LLC that was

provided to Wells Fargo Bank to open a bank account on April 28, 2011 in

the name ofKimara Enterprises, LLC at Wells Fargo Bank. Manning did

not sign his name on the document which was dated June 27, 2007.

Manning could not remember whether he had any discussion with

Farrington regarding the items listed in the Minutes.

(k) Farrington did not tell Manning about receiving any earnest money




This concludes my affidavit.

STAC . BANKS

Special Agent

Federal Bureau of Investigation

Sworn to before me and subscribed i____ __presence this b-tSay ofJuly, 2011.

Notary Public

Dallas County, Texas

My Commission Expires--'---

Affidavit - Page 9

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