Judge rules due process rights not violated in mortgage case

The due process rights of a Las Vegas man who cooperated in a major mortgage fraud case but later was charged were not violated during his trial, a federal judge ruled Thursday.

After a day of unusual testimony, Senior U.S. District Judge Philip Pro denied a defense motion to dismiss the case over allegations prosecutors failed to disclose details of verbal immunity agreements with the defendant, David Mark, and his former girlfriend.

Mark, his lawyer, Michael Fawer, and the two prosecutors in the case, Assistant U.S. Attorneys Brian Pugh and Sarah Griswold, testified under oath during the hearing, as Pro sorted out the defense claims.

Pro also ruled prosecutors did not violate Mark’s rights when they told the jury during their opening trial statement about 12 incriminating statements Mark made while cooperating in the mortgage fraud case.

Mark, a New Orleans lawyer who moved to Las Vegas after Hurricane Katrina, and then-girlfriend Kimberly Brown had provided the FBI in November 2007 with information that led to the indictment of a prominent mortgage industry couple in a fraud scheme that cost banks more than
$52 million.

Prosecutors charged Mark in the case after he later “feigned memory loss” before the trial of the couple, rendering him useless as a witness. Brown testified against the couple and was not charged.

The government rested its case this week, and the defense will start presenting witnesses on April 9 after a break in the trial.

Contact Jeff German at jgerman@reviewjournal.com or 702-380-8135. Follow @JGermanRJ on Twitter.