UNITED STATES DISTRICT COURT

EASTERN DISTRICT OF TENNESSEE

AT KNOXVILLE

LNV CORPORATION, )

)

Plaintiff, )

)

v. ) No.: 3:12-CV-468-TAV-HBG

)

CATHERINE GEBHARDT )

)

Defendant. )

INTERVENERS MOTION FOR JUDICIAL NOTICE OF CRIMINAL INDICTMENT AND CONVICTION BY JURY OF

JERRY D. KERLEY

Comes Now the Interveners, representing themselves, pursuant to Rule 201 Judicial Notice of

Adjudicative Facts hereby requests this Court take Judicial Notice of the documents described

herein and in support states as follows:

1. THE INTERVENERS move this Court to take judicial notice of:

Superseding Indictment of JERRY D. KERLEY, United States of America v. Jeffrey

Whaley and Jerry D. Kerley, Case No. 3:10-cr-169 (E.D. Tenn.) (attached hereto as

Exhibit A.)

Judgment in the Criminal Case of JERRY D. KERLEY, United States of America v.

Jeffrey Whaley and Jerry D. Kerley, Case No. 3:10-cr-169 (E.D. Tenn.) (attached

hereto as Exhibit B.)

2. Under Federal Rule of Evidence 201 the court may judicially notice a fact that is not

subject to reasonable dispute because it: (1) is generally known within the trial courts

territorial jurisdiction; or (2) can be accurately and readily determined from sources

whose accuracy cannot reasonably be questioned. The Court may take judicial notice of

records of any court of record of the United States.

3. On June 6, 2013, Jerry D. Kerley, the owner of Guaranty Land Title Company located at

204 Parkway, Sevierville, Tennessee, was found guilty by a jury of his peers and

convicted in favor of the United States for the following crimes:

Conspiracy to Commit Wire Fraud

Wire Fraud Affecting a Financial Institution

Bank Fraud

False Statements to a Financial Institution

Money Laundering

4. THE INTERVENERS moves this Court to take Judicial Notice of Kerleys indictment

and conviction because these documents confirm that Kerely engaged in a fraud scheme

involving mortgage transactions. GEBHARDT contends in her pleadings that the deed of

trust and the adjustable note rider filed with the Sevier County recorder are not the same

documents she signed at the closing of her mortgage. Kerely, on behalf of his company,

Guaranty Land Title Company prepared the GEBHARDT loan origination documents.

Kerely was present at the closing of the loan and did not sign any document as a notary

because a notary was present who notarized them yet the documents filed with the Sevier

County recorder are notarized by Kerely. These documents filed with the Sevier County

recorder are not initialed by GEBHARDT whereas she had initialed each page of the

documents she signed at closing. When GEBHARDT personally obtained her origination

documents from Guaranty Land Title Company because her then attorney Doug Taylor

refused to do so she discovered a loan application with her signature that she had never

filled out. The information on this loan application was untrue and gives GEBHARDT

genuine cause for concern about how many such loan applications falsified by Kerley

were used and how. A title search uncovered a hidden and highly suspicious assignment

that further clouds the chain of title. Several suspicious deeds of trust and other land

records filed prior to GEBHARDTs purchase of the property may implicate the seller,

Ron Sullivan, as a participant of a fraud scheme devised and executed by Kerley and his

known accomplices or other accomplices, yet unknown.

5. Kerely was convicted of crimes he committed from about August 30, 2005 to about

March 9, 2006. His conviction of these specific crimes shows he has the capacity and

propensity for committing such crimes; and that he was caught committing them during

this time frame which in no way excludes the possibility that he committed similar crimes

using similar means and methods earlier than 2005.

GEBHARDT also contends in her pleadings that she discovered through an audit of her

origination documents prepared by a Certified Professional Accountant that the broker

Joyce Linger and Kerley tacked an additional amount into the loan above the purchase

price of the home that was not an amount she intended to borrow; based on the crimes

and the manner and means identified in Kerelys criminal indictment used to commit his

crimes it is highly probably that Kerley and/or Linger kept this money after the loan

funded.

6. By way of background, Kerley was convicted of wire fraud, and of knowingly and

willfully participating in a scheme and artifice to defraud and to obtain money by means

of materially false and fraudulent pretenses, representations and omissions and that for

purposes of executing such scheme and artifice he transferred by wire in interstate

commerce, writings, signs and signals in violation of Title 18, USC 1343, thereby

affecting a financial institution AND he used materially false and fraudulent pretenses,

representations and omissions to fund and disburse mortgage loans.

7. Kerley conspired with others in the commission of his crimes. Kerely and those he

conspired with used materially false and fraudulent pretenses, representations and

omissions to fund and disburse mortgage loans for other borrowers (straw borrowers)

to purchase real properties and to obtain, for the personal benefit of the co-conspirators, a

portion of the money loaned and disbursed to fund the straw borrowers purchases of

the real properties. Kerley and his co-conspirators also conspired that some fraudulent

real estate transactions involved straw, or nominee sellers and they orchestrated

fraudulent transactions known as property flips where the property would be resold at a

substantially higher price to an unsuspecting straw buyer.

8. A review of the land records and loan origination documents shows it is highly probable

that Ron Sullivan was either knowingly or unknowingly a straw seller and that

GEBHARDT was unknowingly used by Kerley and Linger as a straw buyer and as

such she was deceived as to the risks, duties, or obligations incurred.

9. The documents attached hereto as Exhibits A and B may be accessed online from

PACER under United States of America v. Jeffrey Whaley and Jerry D. Kerley, Case No.

3:10-cr-169 (E.D. Tenn.).

10. Timely written notice of this request is hereby given by email and postal mail service

upon Plaintiffs counsel as required by law.

WHEREFORE, pursuant to Federal Rule of Evidence 201 THE INTERVENERS move

this Court take Judicial Notice of the Information and Conviction of Jerry Kerely and

unknown co-conspirators, United States of America v. Jeffrey Whaley and Jerry D.

Kerley, Case No. 3:10-cr-169 (E.D. Tenn.) without hearing, and for such other and

further relief as this Court deems just and proper under the circumstances.

RESPECTFULLY SUBMITTED on this _____ day of May, 2014

THE INTERVENERS

__________________________________________________________________

DENISE SUBRAMANIAM as Representative for THE INTERVENERS

CERTIFICATE OF SERVICE

The undersigned hereby certifies that the copy of the foregoing motion of the Interveners

has been forwarded by regular U.S. Mail upon the following:

Ronald G. Steen Jr. and

Kevin P. Hartley

STITES & HARBISON, PLLC

Sun Trust Plaza

401 Commerce Street

Suite 800

Nashville, Tennessee, 37219

SUBMITTED on this _____ day of May, 2014

__________________________________________________________________

DENISE SUBRAMANIAM as Representative for THE INTERVENERS