Thursday, February 23, 2012

Landlord's Manager Charged w/ Theft After Allegedly Pocketing Rent, Failing To Pay Mortgage; Leads To F'closure Action, Owner's Credit In Shambles

In York, Pennsylvania, The York Dispatch reports:

  • A local attorney said the man accused of stealing more than $9,000 from him was a close friend for nearly two decades. "I totally trusted this guy," attorney Mike Fenton said of Stephen Lee Newport. "You just don't expect to be screwed by someone you've treated so well."

  • Newport, 58, of 718 Prospect St. in York City, remains free on his own recognizance, charged with the third-degree felony of theft by failure to make required disposition of funds. He was arraigned Feb. 1, according to court records.


  • The allegations: Since September 2005, Newport managed a property at 875 Prospect St. for Fenton, who bought it in September 2005, and Newport was supposed to collect rent from tenants and pay the mortgage on the property, according to his arrest affidavit. Instead, the mortgage wasn't paid, and the property went into foreclosure, the affidavit states.

  • Police said Newport collected rent, but didn't pay the mortgage and also allowed outstanding sewer and refuse bills to reach about $2,952, according to the affidavit. Court documents allege the scheme netted Newport $9,100. Fenton said the true amount is about $18,000.


  • [F]enton said he incurred fees in order to get the property out of foreclosure. The mortgage on the property is $432 a month, he said. "I have no idea why he would do this to me. I just paid more than $15,000 to cure the foreclosure," Fenton said. "I have a good tenant, and I'm back on course -- except for my credit, which is destroyed." Fenton said he believes the alleged scheme was going on for three or four years.

For the story, see Man charged with stealing thousands from York attorney.

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