Guilty plea in mortgage scheme that cost lenders $20 million
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A 35-year-old Ellendale man has pleaded guilty in a mortgage scheme that led to at least $20 million in losses for lenders, authorities said Tuesday.
Michael Anthony Prieskorn had been charged with orchestrating the scheme from December 2006 to April 2007.
Prieskorn pleaded guilty to one count of conspiracy to commit wire fraud and one count of engaging in an illegal monetary transaction.
According to court documents, the scheme involved the purchase of 70 properties in Florida and Minnesota. Prieskorn admitted he and others made a profit by luring others to buy the properties.
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Prieskorn promised the buyers $5,000 for each property and promised to make all the payments for the properties, prosecutors said.
His plan was then to sell the properties, but many of the investors defaulted on their mortgage loans and the properties were forced into short sales or foreclosures, which cost lenders nearly $20 million.
Prieskorn admitted to receiving at least $1 million in the scheme.
He faces up to 20 years in prison. A sentencing date has not yet been set.
