FD-302 (Rev. 10,6,95)

- 1 -

FEDERAL BUREAU OF INVESTIGATION

Date of transcription 08/05/20l0

VELDORA ARTHUR,

was interviewed at the U.S. Attorney's Office by Federal Bureau of Investigation (FBI) Special Agent (SA) Darin M. Didier. Also present for the interview were Assistant U.S. Attorney Armando Rosquete, ARTHUR's Attorney Brian Bieber and another attorney, Larry Handfield, who ARTHUR invited to the interview. ARTHUR and her attorneys signed a castigard letter prior to the interview. After being advised of the identity of the interviewing agent and the nature of the interview, ARTHUR provided the following information:

In approximately January 2006, ARTHUR was contacted by her friend of l5 or l6 years, RODLER MEZADIEU (ph). MEZADIEU asked ARTHUR if she'd be interested in real estate investments. MEZADIEU told ARTHUR that he knew a guy that he had done some deals with. with the housing boom, MEZADIEU told ARTHUR that now was the time to invest.

ARTHUR and MEZADIEU met again at an Applebee's at Sawgrass Mills. MEZADIEU told ARTHUR that he and his partner looked for distressed properties and properties that owners wanted to offload. The properties would be held for a year and then sold for a profit when the value increased. MEZADIEU told ARTHUR that they only invested in properties that had $400,000.00 of equity or more above the purchase price. MEZADIEU told ARTHUR that his partner in these transactions was NEIL FAGAN. MEZADIEU discussed some of his previous transactions with ARTHUR before the meeting was finished.

ARTHUR and MEZADIEU agreed to meet with FAGAN to discuss the potential investments. At the time, ARTHUR was interested in making extra money because she was sending one of her kids to college and the other kid to private school.

Investigation on ---,0",8"-L/ ",-0-==4..l..1-=2,-,0,-,l",0~_at Mi ami, Flo r i da

File # Date dictated Not Dictated

by SA Darin M. Didier

This document contains neither recommendations nor conclusions of the FBI. It is the property of the FBI and is loaned to your agency; it and its contents are not to be distribllted outside your agency.

Case 1:10-cr-20753-PAS Document 233-17 Entered on FLSD Docket 09/25/2011 Page 1 of 9

FD-302a (Rev. 1O-6-25L

Continuation ofFD-302 of __ V""E",L",D=O..,RA"-,--... AR""",-T""H,,,UR,...,~ ___________ ,On 0 8 / 0 4 / 2 0 1 0 , Page _--'2"---_

ARTHUR met with MEZADIEU and FAGAN at vacation Villages in Weston, Florida. FAGAN talked with ARTHUR about being a devout Christian, which interested ARTHUR. FAGAN talked about himself and how he had struggled in the past, but through God, he was able to get where he was. FAGAN had a Bentley, a Mercedes and a Range Rover. FAGAN told ARTHUR he was married and he showed pictures of his kids to ARTHUR. MEZADIEU talked about their clients that wanted to offload properties, including distressed properties. FAGAN emphasized condominiums at HIDDEN BAY CONDOMINIUMS in Aventura, Florida, and FAGAN told ARTHUR that FAGAN already invested in condos there. FAGAN explained that he was vying for a spot on the board at HIDDEN BAY CONDOMINIUMS. FAGAN had a laptop that had pictures of the properties and he showed the pictures to ARTHUR. FAGAN told ARTHUR that they would rent out the condo she invested in. The condo would be rented for social events, business meetings or short-term leases. ARTHUR told FAGAN that she did not have time to "babysit" the condo. Because FAGAN worked with MEZADIEU, a man ARTHUR used to date and that she had known for years, ARTHUR trusted FAGAN to handle the investment for her. FAGAN told ARTHUR that a portion of the funds at closing would go to FAGAN for FAGAN to make the monthly mortgage payments until the property was sold after a year. The proceeds that FAGAN would take at closing would equal 12 months' worth of mortgage payments. ARTHUR was to be paid a portion of the proceeds at closing for buying the unit and to spruce up the condo unit to make it appealing as a rental. FAGAN explained to ARTHUR that the market had new standards which were less conservative and made financing easier to obtain. FAGAN told ARTHUR she would not need to put any money down nor provide any money at closing. FAGAN explained the setup as being like a partnership in whiCh FAGAN would provide the down payment and closing costs as well as paying the monthly mortgage payments. FAGAN and ARTHUR never had the partnership in writing. FAGAN and MEZADIEU told ARTHUR that they were unable to buy any more investment properties themselves because they were stretched thin with other investments and their credit was bad. ARTHUR agreed to purchase one of the condos.

After agreeing to buy the unit, ARTHUR faxed a handwritten application to MEZADIEU along with copies of her bank statements, pay stubs, W-2s and tax returns. MEZADIEU told ARTHUR that he would give the documentation to FAGAN.

At some point prior to buying the unit, FAGAN met ARTHUR at the HIDDEN BAY CONDOMINIUMS. FAGAN introduced ARTHUR to members

Case 1:10-cr-20753-PAS Document 233-17 Entered on FLSD Docket 09/25/2011 Page 2 of 9

FD-302a (Rev. IO-6-9~)

Continuation ofFD-302 of _----'V'-"E"'L"'D"'O"'RA""-~AR""'Tld!H"'U""R~ __________ . On 0 sl 0 4 12010 . Page _-,3,,-_

of the board at HIDDEN BAY and they seemed to like FAGAN. FAGAN seemed established at HIDDEN BAY.

At some point after ARTHUR provided her information to MEZADIEU, FAGAN called ARTHUR and told her that they needed to meet up that day for closing. The closing happened late in the day at a condo unit at HIDDEN BAY that was set up like an office. Only ARTHUR and FAGAN were present for her signing of the closing documents. ARTHUR had to hurry in signing the documents because she had to pick up her daughter from school. FAGAN flipped through the documents quickly and had ARTHUR sign the necessary documents. When signing the closing documents, ARTHUR did not know the value of the condo she was buying nor did she know the amount of the loan she received. FAGAN told ARTHUR not to date the documents she was signing. ARTHUR purchased unit 3711 at HIDDEN BAY CONDOMINIUMS, 3370 NE 190 th Street, Aventura, Florida. ARTHUR had no intention of living at the condo unit and only planned on owning the unit as an investment. FAGAN told ARTHUR that he would give her a copy of the closing documents at a later time, but he never did. At some point either before or after the purchase, ARTHUR and FAGAN went to the condo she bought. The closing took approximately 15 minutes.

Within weeks after the closing, FAGAN called ARTHUR and told her to meet him at the BANKATLANTIC branch at LOEHMANN'S PLAZA on Biscayne Boulevard. FAGAN and ARTHUR went into the lobby of the bank and then FAGAN went by himself up to a teller, who FAGAN seemed to be friendly with. FAGAN came back over to ARTHUR and gave her a check, believed by ARTHUR to be a cashier's check, for $160,000.00, which represented ARTHUR's proceeds from the purchase of unit 3711 at HIDDEN BAY. ARTHUR spent some of the proceeds on furniture to spruce up the condo unit and was planning on using approximately $40,000.00 to buy a 500-series Mercedes Benz at auction. At the time of purchasing unit 3711, ARTHUR had an Infiniti 130.

ARTHUR's daughter was going to need a car and since ARTHUR had the money from the condo purchase, she decided to buy the 2003 500-series Mercedes Benz at auction. Originally, ARTHUR was planning on buying the car in cash, but then decided to finance the vehicle instead. The rest of the money ARTHUR received from purchasing the condo unit went to investment properties; one condo unit in Tampa, Florida, and a piece of land in Ocala, Florida.

Case 1:10-cr-20753-PAS Document 233-17 Entered on FLSD Docket 09/25/2011 Page 3 of 9

----------- --.---- -----FD·302a (Rev. 10·6-95)

Continuation ofFD-302 of __ V-'"E"""L"'D"'O"'RA"""--'AR=T",.H"-'-"UR""-___________ ' On 0 8 ! 04 ! 2 0 1 0 , Page __ 4=-_

When getting the check for ARTHUR, FAGAN told ARTHUR that the closing did not go as planned, so FAGAN did not have the money for the mortgage payments. FAGAN told ARTHUR that there was a second condo unit at HIDDEN BAY that he lined up for ARTHUR to buy which could be used to make up for the money he didn't get in the last closing. FAGAN told ARTHUR that the transaction would happen quickly since FAGAN already had ARTHUR's information from the last transaction.

ARTHUR sent mortgage payments to the lender for unit 3711 and paid the utilities, etc on the unit. The unit was vacant while ARTHUR owned it and all of the bills came directly to the unit. ARTHUR learned of the value of the loan for unit 3711 when she had to make the mortgage payments.

For the second condo unit, FAGAN told ARTHUR that he would utilize the unit himself as an office. FAGAN would then buy the unit from ARTHUR within four to six months. FAGAN told ARTHUR that he was in the middle of a transaction in Bal Harbour involving his entertainment business. ARTHUR did not need to provide any additional documents for the second condo purchase. FAGAN was supposed to make the monthly mortgage payments on the second condo unit as well. ARTHUR never went to the second unit, Unit 3111, at HIDDEN BAY.

For the closing of the second condo unit, FAGAN and ARTHUR met at the same condo at HIDDEN BAY to sign the closing documents. The closing for unit 3111 was one to two months after the closing for unit 3711. Only FAGAN and ARTHUR were at the closing. At the time of the closing, ARTHUR did not know the value of unit 3111 nor did she know the amount of the loan being taken out in her name. FAGAN might have told ARTHUR not to date the documents she was signing. FAGAN did not tell ARTHUR that he would receive any proceeds except for those needed to pay the mortgage. ARTHUR was unsure about the duration of the closing, but the process worked the same as it did in the first closing.

Some time after the closing on unit 3111, ARTHUR met FAGAN at the BANKATLANTIC again, where FAGAN went in by himself while ARTHUR waited in her car with her daughter. FAGAN returned to ARTHUR and presented her with a check, believed to be a cashier's check, for $100,000.00.

FAGAN made one or two mortgage payments on unit 3111 before sending in a check that bounced. The lender called ARTHUR

Case 1:10-cr-20753-PAS Document 233-17 Entered on FLSD Docket 09/25/2011 Page 4 of 9

FD-302a (Rev. 10-6-95)

Continuation ofFD-302 of _--,V,-,E"-,L",D"-,O",RA""",~AR"",,T-,,-,-,H-,,,UR-=>-___________ . On 0 S/ 04/2010 . Page _-=-5 __

about the missing mortgage payment, so ARTHUR called FAGAN. FAGAN told ARTHUR that he was spread thin, but had transactions that were about to close_ FAGAN told ARTHUR that they could refinance unit 3711 to reduce the mortgage payment. FAGAN told ARTHUR that they could not refinance unit 3111 because of the late payments_ FAGAN referred ARTHUR to a broker whose name started with KA (known to Agents as and an appraiser, who ARTHUR believed did the original appraisals for both units at HIDDEN BAY. When the refinance was close to being completed, ARTHUR gave two checks; one check for approximately $S,OOO.OO and the other check for approximately $27,000.00. ARTHUR knew one check was for the refinance and the other check was for the fees and costs. After the referral by FAGAN, ARTHUR dealt directly with on the refinance and FAGAN was no longer involved in the transaction. The closing for the refinance took place at office's conference room. Only and ARTHUR were at the closing_ ARTHUR was not aware of any money being cashed out via the refinance_

After the refinance, ARTHUR realized that she was going to be responsible for both units, although FAGAN was occupying unit 3111. ARTHUR contacted realtor KEN LIMA of KELLER REALTY to list unit 3711. ARTHUR gave LIMA a value that she wanted to sell the unit for, but LIMA's research showed that the value of the unit was much lower. ARTHUR was shocked at the value that LIMA placed on unit 3711. LIMA told ARTHUR that the appraisals on the units were higher than the actual value of the property. LIMA told ARTHUR that FAGAN invested in a lot of units at HIDDEN BAY, which inflated the values of several condos at HIDDEN BAY.

During that time, FAGAN was not answering ARTHUR's calls and would not meet with ARTHUR. FAGAN did not give ARTHUR the closing documents for either of ARTHUR's units, so ARTHUR had to get the documents from the title company.

ARTHUR asked LIMA for help to evict FAGAN from unit 3111. LIMA put ARTHUR in contact with an attorney located near 6 th Avenue and 16S th Street to help evict FAGAN. At the time of eviction, unit 3111 was vacant, but FAGAN had set up an office in unit 3111 at some point prior to that date.

ARTHUR then contacted DENISE RUBIN of COLDWELL BANKER to list unit 3111 for sale. Both units, 3711 and 3111, were in foreclosure at the time and LIMA was working on a short sale of unit 3711_ ARTHUR filed a countersuit against FAGAN, the sellers

Case 1:10-cr-20753-PAS Document 233-17 Entered on FLSD Docket 09/25/2011 Page 5 of 9

FD-302a (Rev. IO-6-95)

Continuation ofFD·302 of _-----'V'-'E"'L"'D"'-O"""'RA£L.£AR""'-T"-'H"-UR"-""~ ___________ ,On 0 8/ 04 /2010 ,Page _--,6,,--_

of unit 3711 and other parties for recission of the mortgage due to fraud. Because RUBIN was not making any progress with unit 3111, ARTHUR asked LIMA to take over the sale of unit 3111. Around that time, the condo association at HIDDEN BAY contacted ARTHUR to tell her that they were foreclosing on unit 3111 on that day or the following day, The association asked for ARTHUR's keys to the unit. ARTHUR had been working with the lender on a short sale of unit 3111, but was blind-sided by the condo association foreclosure action. To this date, ARTHUR is still working on trying to sell unit 3111 via short sale.

ARTHUR went to real estate attorney Leon Sharp to assist her when she noticed that there was fraud on her transactions, but Sharp was non-responsive. ARTHUR then contacted Bieber, who brought her case to law enforcement.

All of ARTHUR's properties are currently in foreclosure.

When ARTHUR was at Barry University, where she graduated with a Bachelors Degree in Public Administration in 2001, she was friends with a woman named who worked at the Dade County Medical Examiners Office. In conversations with ARTHUR found out that was married to FAGAN. told ARTHUR that FAGAN put all of his money into an account in Jamaica.

At the time ARTHUR took out the loans on units 3711 and 3111, she worked at the City of Miami Fire Department as the Personnel Officer and Executive Assistant. At the time of the loan, ARTHUR was making between $107,000.00 and $117,000.00 a year. ARTHUR got licensed on the job and did a lot of community outreach work. ARTHUR worked at the fire department since 1986 and now has the title of Assistant Fire Chief.

ARTHUR's bank balance at the time of the transactions was less than $20,000.00. ARTHUR had a deferred compensation, or pension, account, but no money market or stock trading accounts at the time of applying for the loan. ARTHUR previously had a $10,000.00 investment in the stock market, but the money had been lost prior to the HIDDEN BAY condo purchases. ARTHUR only owned her house in Weston when she purchased the two condos. At some point before or after buying the HIDDEN BAY properties, ARTHUR was working with on buying a property in Port Saint Lucie, but she never bought the property. forged her signature on a document which gave her an interest in the Port Saint Lucie property.

Case 1:10-cr-20753-PAS Document 233-17 Entered on FLSD Docket 09/25/2011 Page 6 of 9

---- ~~~-FD·302a (Rev. 10·6·95)

Continuation ofFD-302 of _--,Vc=E""L==D",O",RA"",---,AR""",T""H",U"""R~ _________ ~ . On 0 8/ 04/2010 . Page _--,-7 __

ARTHUR's friend bought a condominium in Tampa and told ARTHUR it was a good investment, so ARTHUR used part of her proceeds from the HIDDEN BAY condo purchases to buy a condo at 1201 High Hammock Drive in Tampa. The condo was located in a new development in south Tampa called Bronson or Branson. The Tampa condo is now worth around $45,000.00.

ARTHUR heard about the Ocala land that she bought from

ARTHUR grew up in Liberty City and went to Miami Edison Senior High School. ARTHUR acquired her father's property after her father passed away in April 2007.

At this point in the interview, SA Didier showed ARTHUR the following documents and asked ARTHUR to respond to the ~ages shown to her. All documents shown to ARTHUR were included In an FD-340 envelope for inclusion in the 1A section of the substantive case file. The first set of documents shown to ARTHUR were for the $1.365 million loan on her purchase of unit 3711. The documents shown to ARTHUR were the following:

1) HUD-1 Settlement Statement showing a purchase price of $1.3 million - ARTHUR confirmed the signature on the statement was her signature. ARTHUR did not provide the $50,000.00 earnest money. ARTHUR did not go to SERVICE FIRST TITLE, LLC for the closing.

2) HUD-1 Settlement Statement showing a purchase price of $2 million - ARTHUR confirmed the signature on the statement was her signature. ARTHUR did not provide the $50,000.00 earnest money. ARTHUR had not heard the name REGIS HOLDINGS that was listed on the settlement statement and did not know the company was FAGAN's company. ARTHUR was not familiar with the name LANDAMERICA HOLDINGS either.

3) Assignment of Contract listing purchase price as $1.3 million - ARTHUR stated the signature on the contract was not her signature.

4) Assignment of Contract listing purchase price as $1.45 million - ARTHUR stated the signature on the contract was not her signature.

Case 1:10-cr-20753-PAS Document 233-17 Entered on FLSD Docket 09/25/2011 Page 7 of 9

--~------

FD·302a (Rev. 10·6·95)

of FO-302 of __ V""'E"'L!dD"""O"'RA£>...-'-AR>=>-T"'H'-"-U"""R'---,-__________ ~ , On 0 8/ 04 /2010 , Page _--,8=-_

5) Loan Application ARTHUR confirmed the signature on the loan application was her signature, but stated the signature on the page where "PG, 12" appears on the top was not her signature. ARTHUR did not know the loan officer nor did she know the lender. ARTHUR stated she never worked at GATEWAY ASSOCIATES, LLC, which was owned by , and was not the CEO. ARTHUR was not self-employed and did not even earn the approximately $16,000.00 listed as her monthly income at the fire department. ARTHUR did not intend on living in the property and never did live in the property. ARTHUR bought unit 3711 as an investment. ARTHUR did not speak with until the refinance. The "Race:" check box was incorrectly checked "White" for ARTHUR.

6) Address Affidavit -ARTHUR stated that the signature on the affidavit was not her signature.

7) Occupancy Statement ) -ARTHUR confirmed her signature on the statement, but never intended on living in the property.

ARTHUR was then shown documents for the $292,500.00 loan on her purchase of unit 3111 at HIDDEN BAY and the following are her responses:

1) Loan Application - The income amount for her fire department job was overstated and ARTHUR never worked at GATEWAY ASSOCIATES, LLC. The bank account listed was not her bank account. ARTHUR did not have a SUNTRUST BANK account. The signatures appearing on the application are her signatures. The value of her Weston home was less than $1.1 million and she did not plan on renting the Weston home since that is where she lived. The other property she had in her name was not a mobile home.

2) HUD-1 Settlement Statement - ARTHUR did not receive that "Cash to Borrower" of

$288,757.90 from the transaction. The signature on the statement was ARTHUR's signature.

ARTHUR never met the seller of either condo unit. RUBIN was familiar with the units that ARTHUR owned and believed that RUBIN knew of FAGAN.

Case 1:10-cr-20753-PAS Document 233-17 Entered on FLSD Docket 09/25/2011 Page 8 of 9

FD-302a (Rev. IO-6c9J)

ofFD-302 of _--,Vl.±E",L""D""O",RA"",--,AR"""T",-H"""U",R~ __________ ,On 0 8/ 0 4 /2010 , Page ~

ARTHUR was then shown documents for her purchase of unit 3111 at HIDDEN BAY and the following are her responses:

1) HUD-1 Settlement Statement - ARTHUR confirmed the signature on the form was her signature. ARTHUR was not familiar with LANDAMERICA HOLDINGS & INVESTMENTS LLC and was not aware the company was registered to FAGAN. ARTHUR did not provide the $25,000.00 earnest money nor the approximately $158,000.00 due at closing. ARTHUR did not go to SERVICE FIRST TITLE, LLC for the closing.

2) Contract for Sale and Purchase - ARTHUR stated that the signature on the contract was not her signature.

3) Assignment of Contract - ARTHUR stated that the signature on the assignment was not her signature.

4) Loan Application ) -ARTHUR confirmed the signatures on page 1 and page 5 were her signatures. ARTHUR stated she never worked at GATEWAY ASSOCIATES, LLC and was not the CEO. ARTHUR was not self-employed and did not even earn the approximately $16,000.00 listed as her monthly income at the fire department. ARTHUR did not intend on living in the property and never did live in the property. ARTHUR bought unit 3111 as an investment to be held until FAGAN bought the unit from her. ARTHUR did not have a bank account at SUNTRUST BANK and did not have a 2002 Mercedes. FAGAN made a comment about ARTHUR's vehicle when they met, so FAGAN was aware of what type of car ARTHUR drove. ARTHUR did not know an who was the loan officer. The Weston property was not to be rented out since that was ARTHUR's personal residence.

ARTHUR did not know

Case 1:10-cr-20753-PAS Document 233-17 Entered on FLSD Docket 09/25/2011 Page 9 of 9