Mortgage fraud case comes to end
Pocomoke mayoral candidate barred from mortgaging activities for 7 years
POCOMOKE CITY -- Frank J. Ward III, a Pocomoke City mayoral candidate and owner of two companies, reached an agreement Tuesday in a mortgage fraud case that will bar him from participating in lending and other mortgaging activity in Maryland for at least seven years.
His company, The Money Centre Ltd., and employee Annette Coston, are included in the cease and desist order.
As part of the agreement, Ward has to work with borrowers to modify close to 50 mortgages in the next 30-60 days, according to Jed Bellman of the Maryland Office of the Attorney General, who handled the case for the Maryland Commissioner of Financial Regulation.
Bellman said Ward, Coston and his company had to admit to engaging in unlicensed mortgaging activity per the agreement.
Ward must also pay $75,000 to the state for civil penalties and investigation cost, and will have to refund to borrowers any interest or other costs that were collected in violation of Maryland laws.
The agreement was achieved at an Administrative Law hearing presided over by Judge Laurie Bennett at District Court in Salisbury.
The agreement was the best way to reflect that Ward did nothing fraudulent and that his violations were more technical, according to his attorney, Melvin J. Caldwell.
If Ward's construction company -- Ward Construction, Inc., in Pocomoke City -- had been the mortgagee instead of Ward personally taking possession of them, there wouldn't have been any violations, Caldwell said.
Ward was not at the hearing and didn't return calls seeking comment on the agreement or his involvement in the violations.
Ward is one of three candidates running for Pocomoke City mayor in an April 5 election. He is also vice chairman of the board of directors of Maryland Capital Enterprises, a nonprofit group that provides business advice, training and microloans to small businesses, according to the MCE website.
Jermaine and Tylisha Jones were among the 15 or so people who showed up to view the proceedings. The Joneses borrowed from Ward, who eventually foreclosed on their house. They said they were happy with the agreement, as long as Ward follows through with his part of it.
"If not, I guess we'll just be right back here again," Tylisha Jones said at the courtroom after the hearing.
Both said they didn't think a minimum of seven years' barring was enough.
"I don't think he needs to do it again at all," Jermaine Jones said.
smuska@dmg.gannett.com
410-213-9442, Ext. 14
His company, The Money Centre Ltd., and employee Annette Coston, are included in the cease and desist order.
As part of the agreement, Ward has to work with borrowers to modify close to 50 mortgages in the next 30-60 days, according to Jed Bellman of the Maryland Office of the Attorney General, who handled the case for the Maryland Commissioner of Financial Regulation.
Bellman said Ward, Coston and his company had to admit to engaging in unlicensed mortgaging activity per the agreement.
Ward must also pay $75,000 to the state for civil penalties and investigation cost, and will have to refund to borrowers any interest or other costs that were collected in violation of Maryland laws.
The agreement was achieved at an Administrative Law hearing presided over by Judge Laurie Bennett at District Court in Salisbury.
The agreement was the best way to reflect that Ward did nothing fraudulent and that his violations were more technical, according to his attorney, Melvin J. Caldwell.
If Ward's construction company -- Ward Construction, Inc., in Pocomoke City -- had been the mortgagee instead of Ward personally taking possession of them, there wouldn't have been any violations, Caldwell said.
Ward was not at the hearing and didn't return calls seeking comment on the agreement or his involvement in the violations.
Ward is one of three candidates running for Pocomoke City mayor in an April 5 election. He is also vice chairman of the board of directors of Maryland Capital Enterprises, a nonprofit group that provides business advice, training and microloans to small businesses, according to the MCE website.
Jermaine and Tylisha Jones were among the 15 or so people who showed up to view the proceedings. The Joneses borrowed from Ward, who eventually foreclosed on their house. They said they were happy with the agreement, as long as Ward follows through with his part of it.
"If not, I guess we'll just be right back here again," Tylisha Jones said at the courtroom after the hearing.
Both said they didn't think a minimum of seven years' barring was enough.
"I don't think he needs to do it again at all," Jermaine Jones said.
smuska@dmg.gannett.com
410-213-9442, Ext. 14
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