Criminal Charges Against Foreclosure Rescue Operator Dropped; Case Based On Wrongly Obtained Evidence, Says Judge

In Washington State, The Bellingham Herald reports:

• Criminal charges have been dropped against a Bellingham couple who were charged with felonies in April 2007 in connection with what state investigators called a “foreclosure rescue scheme.” In a criminal filing, the Washington Attorney General’s Office had accused Peter and Julia Torkild of theft, forgery, money-laundering and use of proceeds of criminal profiteering. The Torkilds have maintained they are innocent.

• Skagit County Superior Court Judge David Needy ruled that the Washington Department of Financial Institutions had exceeded its legal authority in using its civil regulatory powers to collect evidence in the case. Needy then threw out that evidence. Assistant Attorney General Scott Marlow, who acted as prosecutor, said Needy’s ruling eliminated the evidence that formed the basis of the criminal case. “With the suppression of that evidence, we were unable to proceed with the criminal charges,” Marlow said.

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• The Torkilds entered not-guilty pleas in the criminal case, and have also denied wrongdoing in a civil lawsuit related to the same matter. In the civil case, the court has rejected plaintiffs Darcee and John Johnston’s efforts to get back the title to the home, but the Johnstons still seek civil damages in their pending lawsuit.

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• David Allen, the Seattle attorney who represented Peter Torkild in the criminal case, said state investigators erred in using their regulatory subpoena powers instead of going to a judge to get a search warrant in the case.

For more, see Mortgage charges against Bellingham couple are dropped (Skagit judge says evidence was wrongly obtained).

Go here for criminal prosecutions of foreclosure rescue operators.