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Man Accused of Running Mortgage Fraud Scheme Pleads Guilty
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(March 23, 2010 - Tuesday) - Michael Prieskorn admitted to conspiracy to commit wire fraud and to an illegal monetary transaction involving $225,000.
According to the Minneapolis/St. Paul Stare Tribune article Prieskorn and his associate Richard Laho, allegedly scammed buyers through two offices run by Prieskorn.
The alleged scheme resulted in over $20 million in losses for mortgage lenders, while Prieskorn raked in profits.
According to the indictment, from December of 2006 to April of 2007 Prieskorn and Laho paid their victims $5,000 each in exchange for the use of their names and credit histories which they used to buy about 70 homes in Minnesota and Florida. The two also promised to manage the properties and quickly resell them.
"The pair are accused of supplying the down payments for the purchases, lying to the mortgage lenders and then skimming hefty management fees from the mortgage loans they obtained. Prieskorn pocketed more than $5 million, according to the indictment."
The alleged scheme left in its wake dozens of foreclosed homes and ruined credit records.
Prieskorn could face over 20 years in prison if convicted on all charges. Laho has pled not guilty and his case is scheduled for trial on May 3.
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