Feds Probing "Cash Back" Scam Involving Over 60 Deals

Federal investigators in Minnesota are reviewing more than 60 real estate transactions handled by one former closing agent who, authorities say, prepared loan documents that overstated the purchase price of the properties, hid the overpayments from lenders, and allowed buyers to pocket the difference between the actual price paid and the inflated mortgage amounts (adding up to over $3 million).

The closing agent, Jill Lehn, who was the buyer in a half dozen of the transactions, will forego a criminal trial and instead, has pleaded guilty to one count of wire fraud and one count of money laundering in Minneapolis Federal Court. She is currently cooperating with investigators as the investigation continues while she awaits sentencing.

To read more, see the Star Tribune story, reported at StarTribune.com:

Mortgage scam nets $3 million
(A former Prior Lake closing agent has been charged in an investigation of 60 transactions with inflated purchase prices
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