A Lake Forest Park resident’s request for a state investigation into what he believes are fraudulent loans taken out by owners of Fodor Homes LLC has been denied.
Nevertheless, resident Chris Sheehan intends to pursue the request, saying he believes a loan condition stipulating the homes are used as primary residences was violated.
According to a May 19 letter from Noella A. Rawlings, senior assistant attorney general, the attorney general’s office does not investigate or prosecute criminal activity, except at the request of a prosecutor or governor.
“The Attorney General’s Office does not have the ability or authority to investigate this type of transaction in this situation. It is a matter for the lender,” Rawlings wrote.
Liz Braun, Ph.D, executive director of Fodor Homes LLC, did not return calls for comment.
However, Braun did send an e-mail to The Enterprise in which she said, “Fodor Homes, after nearly two decades of quietly providing high quality services to severely disabled children in Lake Forest Park, has suddenly become the subject of what appears to be a calculated effort to spread misinformation, innuendo, rumor and fear.”
(See letter on Page 19)
Fodor Homes LLC, located in the vicinity of 40th Avenue NE, specializes in treating autistic children and owns and operates multiple foster homes in the area.
Sheehan, who is a neighbor to the homes, asked for the state inquiry in a May 8 letter, stating his concern that Susan Fodor and Margaret Anderson may have committed fraud in the purchase and/or refinance of houses used as foster homes.
Sheehan, who has worked for 30 years in the real estate/mortgage industry, said he was able to view information in public records, such as property profiles and deeds of trust from lending institutions.
According to information obtained by Sheehan, seven homes are owned either jointly or individually by three people associated with Fodor Homes LLC, including Margaret Anderson (who has since retired), Susan Fodor and Fodor’s son Caros Fodor. Three other homes are rented and utilized by Fodor Homes LLC. Only six homes are “operating homes,” Fodor Homes officials have said.
Sheehan believes there is a deed of trust condition on some of the properties that the owner must occupy the house and said he was unable to find any exemption to the requirement. Owner-occupied loans offer a lower investment rate, he said.
Sheehan acknowledged that three properties rented by Fodor Homes LLC do have exemptions allowing the properties to be investment properties.
Sheehan said the only recourse with the lender is to notify them, although the lenders are not required to act.
“Should I determine that the loans for Susan Fodor and Margaret Anderson were obtained under fraudulent means, I will pursue what legal action is appropriate,” Sheehan said.
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