Minnesota Prosecutors Charge Developer, Mortgage Broker, & "Straw Buyer" Recruiter In Alleged Flipping Scam

Three people have been charged by Hennepin County prosecutors in a property flipping, mortgage fraud scam, according to media reports out of Minnesota.

The Minneapolis Star-Tribune reports:

• Three people associated with a suburban developer have been charged with racketeering and theft in a case alleging mortgage fraud based on property-flipping. The Hennepin County attorney's office filed eight charges each against the three defendants: Scott R. Rosenlund of Chaska, president of 10Spring, a home building and development company; Celeste Skaar of Orono, owner of New Day Capital, a mortgage brokerage; and Shinon Lindberg of Greenwood, who allegedly recruited straw buyers for the flipped properties.

KARE-TV Channel 11 reports:

• Prosecutors say the take was more than $2.5 million, and the scheme went on and on until one straw buyer from New Prague called foul after he put in $250,000 and got nothing in return. [...] The three have each been charged with one count of Racketeering and seven counts of Felony Theft by Swindle over $35,000.

The Pioneer Press reports that those who were recruited as the "straw men" in the real estate purchases were left owing millions of dollars.

For more, see:

• 3 people charged in mortgage fraud case (Three people associated with a suburban developer have been charged with racketeering and theft in a case alleging mortgage fraud based on property-flipping),
• Three charged in multi-million dollar bank fraud scam,
• Go here for KARE-TV Channel 11 video report.
• Three charged in real estate fraud case.
• Real estate deal sounded too good to be true. It was. (Three charged with massive mortgage scam that left victims owing millions).

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