Two Minnesota Mortgage Brokers Cop Guilty Pleas In Fraud Conspiracy

In Minnesota, the Pioneer Press reports:

• "Two more Twin Cities mortgage brokers have pleaded guilty as the U.S. Attorney's office continues its crackdown on mortgage fraud. Sean Leaf of Woodbury and Christopher Horton of Minnetonka, both 34, pleaded guilty in federal court Thursday to one count each of conspiracy to commit mail fraud and bank fraud in connection with their business at First Rate Mortgage Group, the U.S. Attorney's office said Thursday. The men admitted to mailing bogus loan applications to banks and mortgage lenders between 2000 and 2004, along with four co-defendants connected to the business."

Reportedly, the scheme involved loaning home buyers money for down payments without disclosing same to mortgage lenders, using inflated buyers' income and assets, falsely describing the buyers' employment, using forged signatures, and using faked and altered pay stubs, gift letters and bank statements. Among the recipients of the doctored loan applications were Washington Mutual Bank for $1.33 million and to Associated Bank for $378,555.

Reportedly, co-defendants Edward Septon, Christopher Septon, Joddilee Lindberg and Micah Thormodsgaard have arraignments scheduled and plan to plead guilty to at least one of the counts, according to court documents. For more, see 2 guilty in mortgage scheme (link no longer available online).

See also, U.S. Attorney Press Release - Two More Individuals Plead Guilty to Charges Related to Mortgage Fraud (link no longer available online).