More On Minnesota Builder Subject Of Grand Jury Investigation; Straw Buyer Scam, Equity Skimming Suspected

Another story on Eagan homebuilder Parish Marketing and Development is reported in the Pioneer Press. Among other things, the article reports:

• Two hundred homes Parish constructed in the south metro are entering foreclosure, drawing the attention of local and federal authorities. The U.S. attorney's office has convened a grand jury to investigate the real estate deals and Parish's role in them. An Apple Valley bank officer and a real estate closer from Elko New Market recently pleaded guilty in U.S. District Court to mail fraud in connection with millions of dollars in mortgage deals under investigation. Their attorneys allege Parish is at the center of the elaborate mortgage scheme now under federal investigation. They link the developer to their clients, who admit bilking lenders and borrowers in that scheme.

• [Bank officer Ramiz] Saadeh, 30, of Apple Valley, and Kristopher Robbins, 27, of Elko New Market, each pleaded guilty to one count of mail fraud this month. Robbins, a self-employed notary and real estate closer, and Saadeh waived their rights to an indictment and are cooperating "in the investigation and prosecution of other suspects," according to their plea agreements. Saadeh's and Robbins' plea bargain stated that the scam involved 200 homes.

Reportedly, the scam involved, among other things, straw buyers buying multiple homes from homebuilder Parish with fraudulently obtained mortgage loans. Many of the homes reportedly ended up being rented to tenants with options to buy, or sold to buyers under contracts for deed. Payments made by the tenants or contract buyers that were to be applied to the existing mortgages weren't and now the homes have either been foreclosed or currently face foreclosure.

For more, see Mortgage scam threatens 200 homes with foreclosure.

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