Ex-NBAer Gets Pinched For Allegedly Duping Bank Into Eating Loss On Short Sale Of (Purportedly) Underwater Home To Live-In Girlfriend, Then Flipping It Months Later & Pocketing $176K Profit; Probe Triggered When Jock's Whistle-Blowing Ex-Wife Tips Off Authorities

In Dakota County, Minnesota, the Star Tribune reports:

• Former [University of Minnesota] Gophers basketball star and NBA player Sam Jacobson and his wife are charged with felonies involving the sale of his Apple Valley home.
  
  Sam and Traci Jacobson were charged in Dakota County District Court last week with theft by false representation and theft by swindle in connection with the August 2011 sale to Traci Jacobson, who was Traci Quam and his live-in girlfriend at the time.
  
  The transaction was a “short sale,” meaning the house was worth less than what Sam Jacobson owed on it, forcing the lender to eat the loss.
  
  In an effort to keep the home from falling into foreclosure, the short sale deal was approved by lender JPMorgan Chase after Jacobson told the company he had filed for bankruptcy, the charges read.
  
  That sale to Quam barred him from remaining in the five-bedroom Gibralter Terrace home and included an “arm’s length” condition that required the buyer and seller to be “unrelated parties ... acting in his or her own self-interest.”
  
  However, investigators say, Jacobson and his three children did not move out after the sale to Quam.
  
  Quam quickly sold the home in late 2011 for $538,000, netting “a significant profit” of $176,000, according to the charges.
  
  Quam then rolled the profit into another house, [...] in Apple Valley, and became engaged to Jacobson on the day that transaction closed. The two were married in June 2013, and they still live in the Cobblestone Lake Parkway home.
  
  The situation came to the attention of authorities from his ex-wife, Jennifer Jacobson, according to the charges.

For the story, see Short sale of home prompts felony charges against ex-Gopher basketball star, wife.