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The Utah Attorney General's Office charged a former Eagle Mountain mayoral candidate with fraud on Wednesday.
Richard Culbertson, 55, and his wife Kathleen Culbertson, 51, were charged in a mortgage fraud case in which they allegedly used their daughter and son-in-law's names to buy a home.
According to a press release from the Attorney General's Office, the Culbertsons used Ashley and Nathan Barnum's names to obtain multiple home loans and also inflated their income on applications by more than $10,000 per month. One loan was earmarked for remodeling and landscaping work, but the $59,324 was pocketed by Richard Culbertson instead.
The Culbertsons also allegedly asked and paid several individuals to use their names and credit in order to buy property.
"Mortgage fraud is spreading like wildfire and real people are losing real money," Attorney General Mark Shurtleff said in a press release. "This case and others like it have the highest priority with the Attorney General's Office. We are committed to working with the state and federal Mortgage Fraud Task Force to put a stop to this scourge."
Richard and Kathleen Culbertson are each charged with three counts of communications fraud and one count of pattern of unlawful activity, both second-degree felonies.
According to court documents, Richard Culbertson used his daughter's name, social security number and income to purchase his home in Eagle Mountain and forged her name on property documents for a home in Saratoga Springs. He also obtained an inflated appraisal for a second Eagle Mountain home in order to receive a higher loan.
The court documents also state that Richard Culbertson inflated Nathan Barnum's income by $14,000, and claimed an income of $11,000 per month for Ashley Barnum, who is a stay-at-home mom. On property documents for the Culbertson's Eagle Mountain home, the home was marked as a primary residence, with Ashley Barnum's signature.
Richard and Kathleen Culbertson face one to 15 years in prison for each felony count if they are convicted. The Culbertsons and Barnums were unavailable for comment Wednesday.
Questions surfaced before the November elections about Culbertson's possible involvement in real estate fraud, but Culbertson vigorously defended his past, claiming investigations were politically motivated. In October, the Utah Department of Commerce, Division of Real Estate, issued a news release saying that Culbertson's real estate license had been revoked by the state's Real Estate Commission "over loan fraud."
Eagle Mountain City Councilman David Lifferth said any public candidate for office will be subject to public scrutiny, and Culbertson should have cooperated with investigators before running for office.
Lifferth said most of the city's politicians are good people trying to do what's best for the city, but the actions of a few bad apples have made the city look bad.
"I'm saddened that Eagle Mountain gets another black eye because someone did something and tried to hide it," he said.
Former mayor Brian Olsen and Linn Strouse, a former city councilwoman, both have criminal cases pending in 4th District Court. Olsen is charged with misusing public money. Strouse faces a charge of accepting a gift, compensation or loan when prohibited.
Lifferth said it is disheartening that Culbertson's alleged fraud may cast a bad light on the city, but he is glad the issues were made public before the election.
"Hallelujah that it came to light before residents voted for someone without knowing the skeletons in his closet," he said. |
