Teachers, principals caught in fraud case
By: Leah Fabel and Scott McCabe
Washington Examiner
October 18, 2009
Fairfax educators sue over alleged land scam
Two Fairfax County public school principals and dozens of teachers they recruited into a North Carolina land deal have been caught up in what could be the largest mortgage fraud case in state history, according to court documents.
A federal grand jury in North Carolina has been probing the massive fraud case. Teachers were left with worthless land and gaping holes in their bank accounts, according to lawsuits growing out of the case.
Daniel Meier, principal at Fairfax's Robinson Secondary School, and his brother Thomas Meier, principal at McLean's Langley High School, worked with a former student, Mark Dain, to motivate investors to pay artificially inflated prices for land in coastal North Carolina at the height of the housing boom, according to a lawsuit brought by the investors. Dain was a co-founder of the now defunct Total Realty Management, based out of Woodbridge.
The company purchased subdivisions worth approximately $150,000 before turning around and selling them for double and sometimes triple that figure, according to the complaint. The Meier brothers allegedly offered "testimonials" on the scheme's success before crowds that often included teachers and colleagues. The sales were manipulated through "sham transactions" and multiple misrepresentations, according to the complaint filed in January in a Virginia federal court.
A lawyer for the plaintiffs in the lawsuit said the FBI had begun a criminal probe into the deals. FBI spokespersons in D.C. and North Carolina could not confirm whether the case has expanded to TRM.
Both Meiers are still administrators in Fairfax schools. Daniel Meier was named in the original lawsuit brought by the teachers. Thomas Meier was not named as a defendant in the lawsuit, but was depicted as involved in recruiting teachers.
"[Total Realty Management's] scheme was lent an air of legitimacy by the involvement of Daniel Meier and Tommy Meier," said the civil complaint on behalf of about 130 Virginia residents, including about 40 Fairfax teachers.
The company allegedly "paid Daniel Meier $25,000 for each lot purchased from TRM in the [s]ubdivisions by any individual referred by [him]," although "[t]eachers were not aware that [he] received commissions based on their purchases."
Daniel Meier denied all charges in a response to the complaint filed in March.
Both Meier brothers recently filed for bankruptcy in federal court. Daniel Meier listed more than $100 million in liabilities on account of the lawsuits pending against him.
Jill Pisner, a lawyer for the plaintiffs, said her clients have stopped pursuing claims against Daniel Meier.
"He is in bankruptcy and his debts exceed his assets," Pisner said. "What money he made, and he earned referral fees of $10,000 to $25,000 per lot on about 35 to 50 sales, plus speaker fees of $1,000 per seminar, is gone now."
Both Pisner and Daniel Meier's lawyer, Alan Shachter, said the FBI was likely not investigating Meier.
Calls and e-mails to the Meier brothers were not returned. Teachers referred questions to Pisner.
Dain could not be reached for comment. The teachers are still pursuing his company, TRM.
The case has garnered huge headlines in North Carolina as a federal grand jury investigated various allegations including whether former North Carolina Gov. Mike Easley got a sweetheart deal on waterfront property and helped green-light permits for the project.
lfabel@washingtonexaminer.com - smccabe@washingtonexaminer.com
