Salineville fiscal officer faced lawsuit by Attorney General

SALINEVILLE - Recently hired Fiscal Officer Robert C. Roach was among several people sued two years ago by then-Attorney General Marc Dann for violating consumer protection laws.

Basing the lawsuit on the high number of foreclosures in Ohio, Dann accused 10 mortgage lenders of "unconscionable acts."

The newspaper has been investigating since receiving an e-mailed tip two months ago about Roach's involvement. He was asked about the situation this week when other information came to light that he is facing several judgments in Mahoning County Court, including foreclosure on his home from which his mortgage company, American Mortgage Advisors, is operated.

In Roach's case, Dann alleged that, as president and CEO of the then-Valley Mortgage Group, he violated the Consumer Sales Practices Act by "knowingly compensating, instructing, inducing, coercing or intimidating, or attempting (the same) a person licensed or certified (under Ohio Revised Code) for the purpose of corrupting or improperly influencing the independent judgment of the person with respect to the value of the dwelling offered as security for repayment of a mortgage loan."

Simply put, Roach was accused of "unfair and deceptive acts and practices" for asking an appraiser to provide an estimate within a specific price range for a property for which he was brokering a loan.

According to Belmont County Common Pleas Court records, Roach faxed to a St. Clairsville appraiser a request to "provide an estimated value range for the following property... the value range anticipated by our office is $59,000 to $65,000. Please advise if this is accurate for a home in average condition in that area."

The lawsuit went on to say that, based upon Roach's specific request in this instance, "it is likely (he) has communicated the desired appraisal valuation of this and other properties to other licensed appraisers."

Dann alleged that "(Roach's) attempts to influence the independent judgment of appraisers regarding the appraised value of residential property may have resulted in inflated appraisals, causing injury to Ohio consumers."

Dann asked that each of the 10 companies being sued pay at least $25,000 and be prohibited from engaging in the same practices in the future.

Additionally, the lawsuit asked that Roach be required to keep business records for five years that could be inspected by the attorney general's office with a 24-hour notice.

In a February 2008 Belmont County Court entry, Roach agreed to the findings in the lawsuit, and the court granted Dann's request for injunctive relief and the maintenance of Roach's records for five years.

During a subsequent June 2008 hearing for damages, Roach was fined $500, with $250 suspended.

Roach was a part-time patrolman in the village police department, and according to court personnel, notes from that hearing indicated he intended to call his police chief as a witness.

The judge said Roach had adequately explained why he did what he did and she saw no need for witnesses, according to court personnel.

During his Aug. 10 interview with council for the village fiscal officer position, Roach spoke at length about the mortgage company he had founded four years ago, saying he had had to let nine employees go and formed a business model that would cut costs and make his business more profitable.

At that time, he also talked about how mortgage companies were "getting a bad name," and people were "beginning to lack trust except for the neighborhood guy," so he developed a business model that eliminated the need for an office, instead hiring 11 independent contractors who work out of their homes, as does he.

Roach did not advise council during his interview about being sued by the attorney general.

This week, Roach said he won what he called a "business disagreement that went to litigation."

Reminded he actually lost the suit when he agreed to the allegations and been assessed a fine, Roach explained, "I was asking for a zero fine; the state was asking for $25,000. The $250 that was paid is a hell of a lot less than the state wanted it to be. I said they were out of their mind. The judge said, 'Pay $250.' That's a win. Had the suit been legitimate, I believe the Belmont County judge would have gone with the state's recommendation."

In addition, Roach said he agreed to the settlement without legal representation.

"I was in a tough spot. In order to resolve the conflict, I had to make a decision in the best interest of my business. I had to settle the case. I would've had to pay $10,000 in lawyer fees just to win."

Among Roach's clients was village police Chief Tim LaClair, whose home loan was originated through his mortgage company.

He was asked about any potential conflict of interest in regard to this transaction, which was finalized prior to Roach becoming village fiscal officer.

"Timothy is not making payments to my company but to whoever the loan was sold off to," Roach emphasized.

He changed the name of his company from Valley Mortgage Group when the market went downhill, not in response to having been sued, he said.

"When I made the decision to expand, it made sense that the name not tie us into a small circle, so that's why the name changed," he said.

He also owns a subsidiary named Acculeads used for searching out Internet leads.

Roach was asked what will happen to the business in the event he loses his home.

"I'm not worried at all about my personal finances or my home, not one bit," he said saying he and his wife are relying on legal advice from attorneys.

He said it was not appropriate to be questioned about what he deems personal matters.

"It's akin to me having to respond to a bunch of tabloid garbage. Before you know it, someone's e-mailing (the newspaper) and I'm responding to where I went and drank two beers last night and whether I chose to drive home after that one beer or two beers. I don't think it's appropriate to get into this. This is the same as tabloid stuff," he said.

jgilbert@mojonews.com