FBI, Minnesota regulators investigate real estate, mortgage fraud cases.

Publication: Saint Paul Pioneer Press (St. Paul, Minnesota) (via Knight-Ridder/Tribune Business News)

Bookmark this article Print this article Link to this article Email this article Digg It! Add to del.icio.us RSS

COPYRIGHT 2005 Saint Paul Pioneer Press

Byline: Tim Huber

Nov. 24--The FBI and state regulators are investigating an apparent spate of mortgage and real estate fraud cases in Minnesota.

Investigators are focusing on schemes that defraud lenders by artificially inflating the value of homes, often by tens of thousands of dollars, or involve undisclosed kickback payments to people selling homes, according to the Minnesota Association of Realtors.

The Edina-based trade group recently sent letters warning its 25,000 members to watch out for illegal practices, which also include undisclosed second mortgages that are misrepresented as down payments and phony contracts for the sale of property.

"What we want to do is point out that this is a bad activity," said Christopher Galler, senior vice president of the Minnesota...

Read the full article for free courtesy of your local library.