November 7, 2012
STORM PICTURES INSIDE
HONORING OUR VETERANS PAGES 9-12
PSC Rules on Mountaineer Gas Base Rates On October 31st, the Public Service Commission ordered an adjustment in the base rates charged by Mountaineer Gas allowing the company to increase its revenue by $6.265 million, or 2.54 percent. Mountaineer requested an increase of $12,187,218, or 4.9 percent. The Commission recently ordered a decrease in Mountaineer’s rate for recovering its purchased gas costs. Because of the concurrent decrease in Mountaineer’s Purchased Gas Adjustment there will be a net decrease in the average monthly residential bills of approximately $5.24, or 8.3 percent. The natural gas utility’s base rate typically accounts for approximately one third of a customer’s gas bill and covers all the company’s expenses to deliver natural gas to its customers except for the cost of purchased gas. The base rate includes an allowance for a return on the company investment, costs of repair, improvement and maintaining utility property, taxes, and depreciation. Mountaineer Gas serves approximately 218,000 customers in 49 West Virginia counties. More information may be obtained by accessing the Commission website, www.psc.state.wv.us, and referencing Case Number 111627-G-42T.
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50 Cents Volume 143
l Issue 44
Hurricane welcomes new Members By Justin Waybright justin@theputnamstandard.com
HURRICANE – Change was on the agenda during the Nov. 5 City Council meeting. The city gained two new faces on its staff: Hurricane Police Officer Josh Lucas and Hurricane Councilwoman Gerry Spears. Both were warmly welcomed by the mayor and council. “We’ve had some good compliments on you,” Mayor Scott Edwards said to Officer Lucas. “Thank you for what you do.” The council swore in Spears as its newest member. “We welcome you to the council,” Edwards said. After the city welcomed its new members, the council began business on an agenda
Hurricane Mayor Scott Edwards swears in Gerry Spears as the city’s newest council member. Submitted photo.
filled with grant resolutions and improvements for Hurricane. Council members approved resolutions involving a $69,898 improvement to City Park. The state-funded project will cover a 5-foot-wide asphalt walking trail and new playground equipment. The council also discussed receiving an emergency generator in the municipal building. Once finalized, the city will have a natural gas-powered generator to be used in case of power loss. The lowest bid received has been $61,883.39. Funds from a loan refinance will cover the cost of the generator and its installation. At the end of the meeting, Edwards reminded audience members of the Christmas Parade, which is 4:30 p.m., Dec. 1.
Utah man sentenced to nearly five years in prison for Stonegate Mortgage Fraud Scheme STAFF REPORT WINFIELD – A Utah man was sentenced Monday, Nov. 5, to four years and nine months in federal prison for his leadership role in a multimillion-dollar mortgage fraud scheme linked to properties in the Stonegate subdivision in Winfield. Raymond Paul Morris, 51, of South Weber, Utah, previously pleaded guilty in July to conspiracy to commit wire fraud and bank fraud. Morris admitted to participating in the sophisticated multimillion-dollar mortgage fraud scheme in early 2006 along with convicted coconspirators Deborah L. Joyce, 38, of Hurricane, and Michael S. Hurd, 37, of Utah. The scheme reaped nearly $2
million in lost equity from the lenders in less than two years. Six defendants were ultimately sentenced to a total of 166 months of imprisonment for their involvement in the fraudulent scheme. U.S. Attorney Booth Goodwin said, “When criminals steal from banks by taking out fraudulent loans, it’s legitimate borrowers who get hurt. Mortgage fraud makes it difficult for honest home-buyers to get a mortgage. And that cuts straight to the heart of the American dream.” Between July 2006 through December 2007, Morris, Hurd and Joyce profited from illegally “flipping” existing homes in the Stonegate subdivision to out-of-
state borrowers at falsely inflated sales prices. During this time, Morris served as a leader of “100X,” organized in Salt Lake City, Utah, which was a group of novice investors who were looking to make quick profits in the real estate boom of the mid-2000’s. While searching for potential real estate deals across the country in late 2005, Morris became acquainted with Joyce, a local Putnam County real estate developer, who at the time was looking to build new singlefamily homes in the undeveloped lots of the Stonegate subdivision. Morris flew to West Virginia and reviewed Joyce’s plans. The two agreed before Joyce
could sell new construction in the subdivision, she needed more expensive comparable home sales of existing properties to justify the asking price for her planned new construction. Joyce approached homeowners in the subdivision and entered into sales contracts to purchase the homes at or near the current fair market value. Joyce then obtained fraudulently inflated appraisals from two local real estate appraisers, James Thornton, 48, and Mark Greenlee, 50, that essentially doubled the fair market value of the properties she had under contract. Joyce sent those appraisals to Morris, who in turn pitched the SEE FRAUD ON PAGE 7
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