Minnesota Feds Charge Attorney In Alleged Mortgage Fraud Flipping Scam; Suspect Accused Of Using 86-Year Old Mom As Unwitting Straw Buyer

In Minneapolis, Minnesota, the Vadnais Heights Press reports:

• A White Bear Town Board official who was accused of using his elderly mother to “flip” a real estate deal and pay off a foreclosed office property was indicted in federal court July 14. The U.S. Attorney’s Office said Richard Sand, 58, was charged in U.S. District Court with three counts of mortgage fraud through interstate wire and 11 counts of money laundering. Donald W. Krause, 49, of Plymouth, and Brenda Epperly, 58, of Oak Grove, were also charged with mortgage fraud and Krause was charged with one count of money laundering.

• Sand, an attorney, has served on the White Bear Town Board for 33 years and was reelected to a three-year term March 9. He pled “not guilty” at a hearing July 15.

***

• According to the complaint, Sand, Krause and Epperly allegedly obtained approximately $1.5 million in fraudulent bank loans by submitting fraudulent applications and closing documents. The group allegedly used Sand’s 86-year-old mother, Antoinette Sand of White Bear Township, to obtain loans by inflating her income and net worth. The indictment alleges that from February through April, 2008 the defendants devised a scheme to obtain loans fraudulently, using two residential properties to get funds. On Feb. 21, a purchase agreement was executed for a $1.6 million home in Orono to RSN Companies, in which Krause was a general partner. The next day Krause sold the residence to Antoinette Sand for $2.6 million — a $1 million profit.

For more, see White Bear Town Board chair indicted in mortgage scam (Dick Sand, two others headed for federal court).

From the Office of the U.S. Attorney:

• Press release: Three indicted in connection with fraudulent $1.5 million loan scheme,
• Indictment: U.S. v. Sand, et al.

See also: Minn. Feds Suspect Attorney Of Leaving 88-Year Old Mom Holding The Bag As Straw Buyer In Scam To Generate Cash To Redeem His Law Office From F'closure.