Criminal Investigation Targets Twin Cities Area Mortgage Company

In Hennepin County, Minnesota, the Minneapolis Star Tribune reports:

• Hennepin County investigators are probing mortgage fraud complaints involving a Brooklyn Park mortgage company that allegedly used straw buyers to buy property at inflated prices. The county is investigating Universal Mortgage and several of its employees, according to a search warrant affidavit filed by a county investigator.

• Universal's practice of using straw buyers was detailed by the Star Tribune in June. One of those straw buyers was a 22-year-old exotic dancer who said she bought 10 properties through Universal; she's now cooperating with the county attorney's office, according to the affidavit. She and four other buyers whose experiences are detailed in the affidavit said they purchased a total of 25 properties through Universal.

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• The affidavit was written in support of a search by investigators of records of property dealings involving Universal and several related companies. Also sought were property records involving Donald Walthall, Universal's owner; Andre Bellfield, a former employee; and Marlon Pratt, who also worked at Universal. Walthall didn't return a call and the others couldn't be reached for comment.

For more, see Mortgage firm is focus of Hennepin Co. fraud probe (Hennepin County is investigating Universal Mortgage of Brooklyn Park and several of its employees).

For a related June, 2007 article on this story, see 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.

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In a related Federal civil racketeering (RICO) lawsuit brought against Universal Mortgage, Andre Bellfield, and Marlon Pratt by Homestead Mortgage Company, a motion is currently pending seeking a default judgment against Andre Bellfield for approximately $700,000. It appears from Federal Court records that Bellfield has either left town, gone into hiding or has otherwise made himself scarce because the process server in this case couldn't find him to serve him with the legal papers. Homestead Mortgage was forced to serve him with notice of the lawsuit by taking out a legal notice in a newspaper. Go here for information on the pending motion for a default judgment against Andre Bellfield.

For copy of Federal racketeering lawsuit, contact me at HomeEquityTheft@yahoo.com and I'll e-mail it to you (be sure and put "Homestead Mortgage vs. Universal Mortgage, Pratt and Bellfield" in the subject line).