Alleged Minnesota Straw Buyer Scam Focus Of Media Report

In Minnesota, a story by the Star Tribune focuses on a number of real estate transactions involving Universal Mortgage Inc., a brokerage company in Brooklyn Park. According to the story:

• "Property records show Universal has been at the center of a web of transactions where a small group of investors, including several Universal employees, bought rental properties and quickly resold many at above-market prices. At least 27 houses linked to the firm have landed in foreclosure, according to property records. Earlier this year, a mortgage lender filed a federal lawsuit against Universal, accusing two employees of using fraudulent documents to make money from another real estate deal. And two other people who bought houses through Universal are accusing the company of taking advantage of their real estate inexperience to sell them overpriced rental properties."

The story describes one buyer, a 21 year old woman, who was duped into buying ten investment properties; and another couple who purchased homes through Universal's helped who have already lost three homes to foreclosure, and soon will lose six more.

Apparently, there are no criminal charges pending against Universal owner Donald Walthall (who declined comment for the Star Tribune story), Marlon Pratt (a Universal employee who owned five of the houses that one unwitting straw buyer ended up being stuck with), or former Universal employee Andre Bellfield. However, a civil lawsuit filed by a mortgage company names Universal, Bellfield and Pratt as defendants, alleging fraud and racketeering involving the alleged duping of another straw buyer.

For more, see 'Straw buyer' deals fuel tidal wave of foreclosures (Real estate speculators out for profit can manipulate the system, experts say. A woman says she fell victim to a Twin Cities scheme).

Go here for other posts on the alleged Universal Mortgage straw buyer, home flipping scams.

For copy of Federal lawsuit, contact me at HomeEquityTheft@yahoo.com and I'll e-mail it to you.