Two women recently pleaded guilty in Federal Court in the District of Minnesota to their roles in a mortgage fraud scheme that defrauded lenders approximately $4.2 million.
My Dinh Lam and Ashley Elizabeth Prasil, both who reside in Minnesota, admitted in their plea agreements that from December 2006 through December 2007, they both conspired to steal money from lenders to market a Minnesota development called Cloud 9 Sky Flats.
The defendants also pleaded guilty to one count of conspiracy to commit wire fraud in connection with this plan.
The scheme involved finding buyers who would apply for mortgage loans to purchase units in the development. All buyers would receive a kickback of approximately 30% of the reported purchase price for the unit.
However, the application forms that were submitted to the lenders did not disclose these kickbacks.
Another conspirator, Sheri Lynn Delich who has been charged for her involvement in this case, controlled an account where the buyers received their kickbacks. At the same time, a portion of the kickback was reduced and this money was then split between the defendants.
There were more than 40 development units sold during this scheme. Since the scheme began, more than 80% of the loans have defaulted.
For their crimes, the defendants face a potential maximum penalty of five years in prison. United States District Court Judge Susan Nelson will determine the sentences for the defendants at a future hearing that has not been scheduled.
