Mortgage News

Eric R. Krahnke, 50, Andover, Minnesota, and Michael I. Striker, 55, Minnetonka, Minnesota, were each charged August 19, 2008, in Minneapolis, Minnesota, on 21 counts of bank fraud, as well as one count of conspiracy to commit bank fraud and one count of money laundering.

Their indictment alleges that from March 5, 2003, to October 31, 2003, Krahnke and Striker knowingly and willfully conspired with each other to …

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Original post by default@goarticles.com (Michael Dugu)

Donald Todd Yeager, 41, Ardamore, Oklahoma, a former appraiser who provided misleading and inflated appraisals of the homes to lenders in a mortgage fraud scheme involving approximately 200 residences and approximately $100 million in loan proceeds, was sentenced to 15 months and three years supervised release on one count of honest services fraud.  Yeager was sentenced by United States District Court Judge Ann Montgomery August 18, 2008, in Minneapolis, Minnesota.

Yeager …

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Original post by default@goarticles.com (Christina Costa)

Christopher Erik Septon, 35, Big Lake, Minnesota, was sentenced to two years in prison. United States District Court Judge Joan Ericksen also sentenced Septon to three years supervised release and ordered him to pay more than $2.3 million in joint restitution with the other defendants.

As previously reported by Mortgage Fraud Blog, the co-defendants in the case are: Sean Brian Leaf, 35, Woodbury, Minnesota, who was sentenced on May …

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Original post by default@goarticles.com (Julian Lim)

Edward Arnold Septon, 59, Naples, Florida, was sentenced to 70 months in prison and five years supervised release for his involvement in a fraudulent mortgage brokering business that resulted in a loss to area banks of more than $2.3 million.. Septon was the founder and leader of First Rate Mortgage Group, a mortgage brokerage business known to be extensively engaged in mortgage fraud.

On May 12, 2008, Christopher Adam Horton, …

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Original post by default@goarticles.com (Jennifer Morva)

Minnesota Attorney General Lori Swanson filed six new lawsuits in Hennepin County District Court against foreclosure consulting companies that charged Minnesota homeowners up to $2,375 to save their homes but failed to provide promised assistance that would help them retain home ownership.

The lawsuits were filed against: (1) National Foreclosure Relief, Inc., a Nevada corporation with a California business address; (2) Lewis Loss Mitigation, Inc. of Alabama, which also does business as …

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Original post by default@goarticles.com (Unknown)

Sean Brian Leaf, 35, Woodbury, Minnesota, was sentenced to 18 months in prison and three years probation, and Joddilee Margaret Lindberg, 50, Minneapolis, Minnesota, was sentenced to four years probation and eight months of community confinement with work release. Both were sentenced on one count of conspiracy to commit mail fraud and bank fraud, and were also ordered to pay more than $2.3 million in joint restitution with the other defendants.

One …

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Original post by default@goarticles.com (Isla Campell)

Jonathan Edward Helgason, 45, Chisago, Minnesota, and Thomas Joseph Balko, 37, Rogers, Minnesota, along with their company, TJ Waconia LLC, entered their guilty pleas April 17, 2008, in Minneapolis before United States District Court Judge Joan Ericksen.

According to their plea agreements, Helgason, a licensed real estate agent, and Balko were the owners of numerous companies, including TJ Waconia, Total Title LLC, Complete Real Estate Services, Inc. …

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Original post by default@goarticles.com (Alan Lim)

Ronald Clark Joseph, 49, Prior Lake, part-owner of LHS Mortgage, Inc., was sentenced to 63 months in federal prison by United States District Court Judge Donovan Frank for his role in a mortgage fraud kickback scheme.

As previously reported by Mortgage Fraud Blog, on July 2, 2007, Joseph pleaded guilty to one count of mail fraud and one count of money laundering. Joseph, a licensed mortgage broker, devised …

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Original post by default@goarticles.com (Wade Robins)

Mario Augustin Lewis, 37, Minneapolis, Minnesota was sentenced to serve four-and-a-half years in prison and ordered to pay $437,814.41 in restitution by U.S. District Court Judge John R. Tunheim.

Lewis pleaded guilty earlier this year to one count of wire fraud and one count of money laundering in connection with a mortgage-fraud scheme involving Ronald Joseph of Credit River Township, Jill Lehn of Prior Lake and Isadore Stewart.

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Original post by default@goarticles.com (Carrie Reeder)

Universal Mortgage, Inc., Universal President Donald Walthall, and Universal loan officers and agents Marlon Pratt, Rahmeen Underwood, Andre Bellfield and Cleveland Fields have been charged by Hennepin County Attorney Mike Freeman with theft and racketeering in a 25 count criminal complaint. Two of the defendants were taken into custody and have been released, however there are outstanding warrants for the remaining three defendants.

The complaint alleges a $4.9 million …

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Original post by default@goarticles.com (Jeff Rauth)