Jury rules against pastor in consumer real estate fraud case

A Jackson County jury agreed with the Missouri attorney general that a home-buying program in Kansas City was a scam.

Attorney General Chris Koster’s office filed suit against a company called Tri-State Holdings and two men associated with the business, Brandon Miller and Tony Caldwell. The state alleged that Tri-State, Miller and Caldwell obtained upfront payments on real-estate contracts, then failed to pay back taxes and make repairs that had been promised.

Caldwell is the pastor of Eternal Life Ministries on Kansas City’s East Side. He once camped out on a roof to bring attention to homelessness.

The defendants purchased the properties at delinquent tax auctions and resold them to consumers at prices between $30,000 and $40,000. The state found more than 50 buyers it said were cheated by the defendants. During the 12-day trial, the state argued the seller-financed arrangements contained terms that were impossible to fulfill.

The defense argued the program was a legitimate way to get people into homes that would otherwise have remained vacant or been demolished. 

Caldwell’s attorney, Stacy Shaw, said Caldwell was a faith leader with an 18-year record of ministry and advocacy. “Tony Caldwell is a person who puts his neck on the line for other people,” she said in her closing argument.

But in 2005, Caldwell was removed from the city’s ethics commission after his criminal history surfaced. Past charges included forgery, stealing and selling liquor without a license.

The verdict requires the defendants to pay at least $120,000 in restitution. A hearing to consider penalties and fees is scheduled for August 17.

 “Tri-State deceived many low-income consumers with the promise of home ownership at a price they could afford, but instead, left them in a nightmare of false promises and stolen money,” Koster said in a news release announcing the verdict.