Former Mayoral Candidate to Pay $75K Fine

Written by

Scott Muska
Staff Writer

POCOMOKE CITY -- Frank J. Ward III, a former Pocomoke mayoral candidate and Salisbury businessman, faced administrative law hearings in October and November after an agreement in a mortgage fraud case against him fell through.

A full-fledged administrative hearing was scheduled after the agreement didn't pan out for Ward, defense witnesses and witnesses provided by the Maryland Commissioner of Financial Regulation.

The commissioner investigated Ward and issued Ward, his company -- The Money Centre Ltd. -- and an employee a summary cease and desist order in December 2010.

The agreement made in a March administrative hearing stated Ward had to modify close to 50 mortgages in the 30 to 60 days following the agreement. He was also barred from lending to homebuyers in Maryland for at least seven years. Ward was also ordered to pay $75,000 to the state for civil penalties and investigation costs, and was to have refunded to borrowers any interest collected fraudulently.

Administrative Law Judge Laurie Bennett is in the process of reviewing the evidence and testimony presented during the hearings, and Tom Koehler, investigator for the commissioner, said he doesn't expect a decision to be made for at least a few months.

"There's quite a bit of evidence to go over," said Koehler, adding an administrative law judge usually has somewhere in the area of 90 days to go over the evidence and make a ruling. This is often followed by an appeals process, he said.

Among other allegations, the commissioner's investigation revealed that Ward failed to provide a "written contract, any other loan papers or disclosure forms" for the purchase of one house until the time of settlement, which violates Maryland and federal law.

In another complaint, Ward was accused of misappropriating at least $1,890 of fees collected and put in an escrow account intended for payment of outstanding property taxes.

Ward is accused of operating as both an unlicensed mortgage lender and an unlicensed mortgage loan originator.

Ward did not answer a voicemail asking for comment placed to his office Wednesday.

Source:  http://www.delmarvanow.com/article/20111117/NEWS01/111170364/Former-mayoral-candidate-pay-75K-fine