Dodge gets 6 1/2 years for helping Farah

CONCORD — Laconia native Donald Dodge will serve 6 1/2 years in federal prison for his role in the collapse of a local mortgage company that costs hundreds of people, many of them local, millions of dollars.

Dodge, who appeared yesterday for his sentencing in U.S. Federal District Court surrounded by his family, wept as he expressed his remorse for the pain he caused his victims that included his wife and some of his life-long friends who stood by him yesterday.

"I know I deserve to be punished," he said acknowledging his betrayal of his friends and family. "I have no fear of going to prison but I hate to leave behind my wife."

U.S. Attorney Mark Zuckerman recommended that Dodge serve 121 months, or 10 years and one month, for allowing business partner and Financial Resources Mortgage, Inc. President Scott Farah to use him to steal $20-million from his clients.

Zuckerman, who had earlier in the day recommended 10 years for Farah because of his cooperation, argued that Dodge was not initially as forthcoming as Farah about the way the two companies operated.

He said Farah came in and offered information with no restrictions on whether or not his statements could be used against him.

"That distinction is that Farah agreed to testify against Dodge before Dodge agreed to testify against Farah," said Barbadoro unswayed by Zuckerman's argument against leniency for Dodge.

When Zuckerman said that Farah's cooperation "substantially advanced the investigation" and Dodge's did not, Barbadoro said that "wasn't necessarily his take on the situation."

Mark Howard is Dodge's lawyer and he said he strongly objected to Zuckerman's characterization of his client.

"From that first day, Mr. Dodge wanted to help Mr. Zuckerman understand," Howard said noting that Zuckerman told him he didn't want to interview Dodge until he knew more about FRM and the Ponzi scheme.

"I never gave it a thought that we'd be punished (at a higher level) for dealing on their terms," he said, calling Zuckerman's position a "very dangerous precedent."

In the end, Barbadoro said he was swayed by Dodge's "willingness to help — post crime," but before passing judgment wanted some assurance that Dodge didn't try to minimize his role in the scheme.

Howard replied that Dodge never denied his role in creating the line of credit Farah used to steal $20-million from his clients, but that his information as to how the business operated, especially before his involvement in 2005, was not at the same level as Farah's.

"I basically wasn't going to let my client plead guilty to something he didn't do," said Howard. "He wanted to plead guilty to what he did."

Dodge's assertion was that he came to create CL&M in 2005 after much pleading by Farah to find him a servicing company for his mortgage business. He has all along contended that while he allowed Farah to "borrow" client money from a line of credit, he never realized until it was too late that Farah's business was largely a fraud.

"Are you satisfied Dodge isn't holding any assets?" Barbadoro asked Zuckerman.

"Yes," Zuckerman replied. "He took no money except for his salary."

Barbadoro said he was impressed by the level of support shown to Dodge and by the statements made in his favor by some of the people who lost the most money, notably Harry and Priscilla Bean of Gilford who described Dodge as a life-long friend who was, in part, duped by Farah.

Earlier Priscilla Bean had told Barbadoro that she and her husband thought Dodge was at fault, was aware of some wrongdoing for some things and should go to prison for two to four years — not the 10 requested by the government.

Dodge himself agreed he was guilty of allowing the line of credit to Farah and for concealing it from potential clients.

He also told Barbadoro that he was "deeply concerned" for his wife who had lost all of her savings in FRM and would now be deprived of his Social Security during his incarceration.

"Please help correct this injustice and don't make her a victim twice," he said.

Barbadoro took a few silent minutes before passing judgment and sentencing him to 78 months in federal prison, most likely in Pennsylvania.

"First, I'm not persuaded Mr. Dodge knew it was criminal at the outset," Barbadoro said adding that he was not completely convinced that he didn't engage in fraud.

"I do believe Mr. Dodge has legitimate remorse," he said.

"None of that eliminates the harm done to these people. Your crime was continuing and for that you have to be punished," Barbadoro said, adding he could do nothing to mitigate the effects on Dodge's family.

Barbadoro also agreed to allow Dodge to "self surrender" to the federal prison where he'll serve his sentence.

After asking about Dodge's medical health and learning he has angina, high blood pressure, anxiety, and needs a machine to sleep for his sleeping disorder, Barbadoro said the process of transporting him to prison would be "physically demanding" and possibly quite lengthy.

Zuckerman agreed and told the judge there is no risk of harm or flight and it was "unnecessary" to put him through the ordeal of transport.

After assuring Barbadoro that he would be no danger to himself, Dodge thanked him for his consideration.

"There is no mercy on my part," Barbadoro said flatly, ordering Dodge to surrender to the appropriate federal prison on Feb. 11.