Attorney General's News Release

April 11, 2000

Officials arrest man indicted by Jackson Co. grand jury in connection with alleged fraudulent real estate financing

Jefferson City, Mo. — Law enforcement authorities in Johnson County, Kansas, today arrested a man indicted by a grand jury in Missouri for allegedly taking payments of up to $40,000 from consumers trying to obtain real estate financing who then received neither the financing or refunds. The Jackson County grand jury handed down the indictment last month at the request of Missouri Attorney General Jay Nixon.

Joseph C. Matthews, also known as Michael J. Matthews, (DOB - 3/16/53) faces nine counts of unlawful merchandising practices. The indictment charges Matthews with:

• Misrepresenting to consumers that, in exchange for payment, he would obtain thousands of dollars from "investors" to provide financing for the consumers' purchase of real estate;
• Misrepresenting that the payments would be used for closing costs and other up-front fees connected with the real estate purchase;
• Failing to disclose to consumers that he was not licensed in either Missouri or Kansas as either a loan broker or a real estate broker, agent or salesperson, as required by the laws of both states;
• Taking an advance fee in order to broker a loan, in violation of Missouri law; and
• Misrepresenting why the loans did not materialize, falsely telling consumers a refund would be forthcoming, and misrepresenting the reasons for failing to make those refunds.

The counts allege that Matthews used the business names Chatan Corporation, Executive Funding Group and Realm Group in connection with the loan and real estate brokering.

Unlawful merchandising practices is a class D felony under Missouri law, with each count punishable by up to five years in prison and a $5,000 fine. The charges against Matthews are merely accusations; as in all criminal cases, the defendant is presumed innocent until or unless proven guilty in a court of law.

Inquiries from consumers should be directed to consumer@ago.mo.gov or 1-800-392-8222 (from within Missouri) or 573-751-3321 (outside Missouri).

All media inquiries should be directed to Press Secretary John Fougere.

E-mail      Phone: 573-751-8844         Fax: 573-751-5818