Breaking News


Attorney Says Neal Pascal Should Get Probation

Sentence In Another Mortgage Fraud Case Is 8 Months

Thursday, March 29, 2007

An attorney for former Channel 9 weatherman Neal Pascal said he is facing up to six months in federal prison for mortgage fraud, but he should get probation.

Attorney Dee Hobbs said no bank suffered from his inflating the price of homes he bought so he could get more money on the loans.

Pascal was due to be sentenced on Thursday afternoon, but it was delayed until April 5 at 9 a.m. before Judge Curtis Collier.

Meanwhile, Judge Collier on Thursday gave an 8-month sentence to Kimberly Lynn Jones, who worked for a local mortgage company and was involved in submitting false sales amounts.

She must serve four months in prison and then four months in home confinement.

Judge Collier told Ms. Jones that mortgage fraud is a serious matter that could affect the nation's economy.

He said, "People who engaged in this type of conduct should not walk away without any punishment."

Attorney Hobbs, in a 9-page sentencing memorandum, said Pascal "contends that a sentence of imprisonment is not appropriate under the circumstances of his case, is not beneficial to the victims herein and in fact would be injurious to them, and would not serve the best interests of justice."

He said, "Because Mr. Pascal has fulfilled all financial obligations relative to the loans in question, the victim banks have literally profited from the transactions in question. Moreover, it has been noted that there is no indication of actual intent on Mr. Pascal's part to defraud anyone."

The attorney said of the loans paid off by Pascal, the lenders have made $563,548 in profit.

He said Pascal still owns 13 investment properties and he has met his payments on those even though he lost his job at Channel 9.

The memorandum said those who signed option contracts with Pascal to eventually purchase the homes "have also benefited from his treatment of them. A number of these persons would not have been able otherwise to obtain financing to complete a house purchase."

Attorney Hobbs said, "An unfortunate development for both Mr. Pascal and the victim banks was the termination of Mr. Pascal's employment from a local television affiliate last Sept. 22. Although characterized as a 'resignation,' the end of Mr. Pascal's employment was actually a firing."

He said Pascal earned $123,760 at Channel 9. The attorney said he has not been able to find other employment and is living off unemployment that terminates in April, rental income and his current wife's income.

Imprisonment of the defendant would jeopardize his ability to continue to pay off the loans, attorney Hobbs said.

He also said he had cooperated with the government from the first time he was questioned.

Attorney Hobbs said Pascal "readily acknowledges inflating the selling price of the transactions in question by about 10 percent to cover his down payments, but never in any greater amount."

On the Jones case, prosecutors said beginning in February 2002, Ms. Jones would seek to induce lenders to loan more money than they otherwise would have loaned by deceiving the lender as to the actual sales price of residential property.

She also misrepresented the amount of down payments made by borrowers, it was stated.

The false settlement papers were used to generate inflated fees, service charges and commissions, prosecutors said.

Ms. Jones then split the excess fees and funds with others, it was stated.

The indictment says one sale on a house on Freudenberg Lane in Red Bank was for $89,900, but the stated sales price was $100,000.

A house on South Moss Avenue in Chattanooga sold for $74,000, while Ms. Jones listed it at $85,000.

A tearful Ms. Jones apologized "for letting everyone down" - including her young son, husband and church.

She asked to be allowed to delay reporting to prison so she can see her son graduate from elementary school at the end of May. She must report June 1.



Grohn, Floyd, Marceaux Pick Up For House Contests

Larry Grohn, Richard Floyd and Basil Marceaux are the latest to pick up for state House races. Mr. Grohn picked up papers for House District 30, a seat now held by Vince Dean of East Ridge. Rep. Dean is considering a race for the state Senate. Rep. Floyd picked up for House District 27, which he has long represented. Mr. Marceaux, who has run for a number of offices, ... (click for more)

Authorities Seek Information On Missing James McNeese

The Criminal Investigation Division of the Hamilton County Sheriff’s Office is requesting help from the public in attempting to locate James L. McNeese. Mr. McNeese, 62, is described as balding, weighing approximately 180 pounds, and 5’9”. He wears glasses. Mr. McNeese was last seen last Monday, at a residence in the 4000 block of Anderson Pike on Signal Mountain. Deputies ... (click for more)

In Defense Of Discretionary Spending

Dear Roy,   I am flattered that you and I think a lot alike and that we both use the same 'Rule Book.'  I also agree with you that it is healthy to offer differing opinions.  However, I disagree with you on the issue of discretionary spending.   I did not see you at the Hamilton County Pachyderm Club meeting on Monday.  Sorry that I did not see you ... (click for more)

Roy Exum: Stop The Emissions Hoax

Eva Milligan, just one of very many across the state who are fed up with Tennessee’s ridiculous auto emissions effort, wrote a letter to Chattanoogan.com last week that painfully told how she had spent over $1,000 to get her 1997 Ford Ranger through the scam and how she was still unsuccessful. She also pointed out such testing is fruitless – except to government coffers – and ... (click for more)

Reed Get's 400th Win At UTC With Doubleheader Sweep

CLERMONT, Fla. - The 2012 season started Friday morning and there were a lot of questions for the University of Tennessee at Chattanooga softball team that lost five senior starters including two pitchers heading into Dot Richardson's National Collegiate Invitational in Clermont, Fla. The Lady Mocs and head coach Frank Reed, who picked up his 400th win at Chattanooga (2-0), made ... (click for more)

Taylor, Wattad Propel Chattanooga Mocs Past Elon 83-75

The senior duo of Ricky Taylor (Brownsville, Tn.) and Omar Wattad (Johnson City) combined for 46 points to lead the Chattanooga Mocs (10-16/4-9) over Elon (13-11/8-5) in Southern Conference North Division action Thursday night. Taylor (13) and Wattad (14) had 27 of those points in a second-half comeback. Lucas Troutman hit one of two free throws at 12:11 to give the Phoenix ... (click for more)