twitter linkedin
facebook google+

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to and get immediate access to all news, statistics and archives.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from

Mortgage News Reprints
Put entire stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed stories free on your Web site or for your RSS reader.

News Archives
Archive of stories by month going back to 1999.

Press Releases
Reports and announcements from

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Directories
Directories of lenders, branch operators and mortgage service providers.

Mortgage Graphs
Directories of lenders, branch operators and mortgage service providers.

home subscribe advertise reprints e-mail help RSS about us LOG IN

Mortgage News


Mortgage News

HOT Topics









site map

Mortgage Fraud News | Fraud Statistics | Fraud Index | Fraud Blog
Mortgage broker, originator and banker criminal cases. Real estate flipping and appraisal fraud. Mortgage fraud prevention, studies and analysis.

P R E S S   R E L E A S E


June 2, 2011

Jury finds Albertville man guilty for involvement in $1 million mortgage fraud scheme

MINNEAPOLIS Earlier today in federal court, a jury convicted a 31-year-old Albertville man for his role in orchestrating a mortgage fraud scheme that caused losses to lenders exceeding $4.6 million. Trial evidence showed that John Anthony Spencer brokered fraudulent loans which were used by recruited purchasers to buy residential real estate at inflated prices. The transactions generated proceeds that greatly exceeded what the sellers were content to accept as full payment for the properties. The excess monies were split up among the buyers Spencer recruited to buy the properties; Spencer; and accomplices Spencer recruited to bring the transactions to fruition.

After a two-and-a-half week trial, the jury found Spencer guilty on one count of conspiracy to commit mortgage fraud through interstate wire, ten counts of wire fraud, and one count of money laundering. Spencer was indicted, along with two co-defendants, on December 7, 2010. According to the indictment filed in this case and the evidence presented at trial, the properties involved included six single-family homes in north Minneapolis, five residential condominium units located on Fisk Avenue in St. Paul, four condo units located on Dayton Avenue in St. Paul, a home in Albertville, Minnesota, and two investment properties located in north Minneapolis.

According to the evidence, Spencer, a mortgage broker at Minnesota One Mortgage, agreed to assist the owner of a five-plex condominium unit on Fisk Street in St. Paul to sell those units at inflated prices. To that end, Spencer recruited his co-defendant, Bryan Joseph Lenton, a real estate appraiser, to appraise each of the units at substantially more than the owner of the units was willing to accept as full payment for them. After that, Spencer recruited a straw buyer to purchase the units with loan proceeds provided based on a fraudulent loan application prepared by Spencer and Patrick Arthur Dols, another mortgage broker at Minnesota One. Spencer also arranged for $227,800 in payments to AC Standard Construction for purported work on two of the five units. In reality, however, no work was done. In fact, AC Standard Construction was nothing more than a sham company through which those involved in the fraud received kickbacks.

In April of 2006, Spencer engaged in similar conduct with an unnamed co-conspiring real estate developer who had been unable to sell six single-family homes in north Minneapolis. In this instance, two purchasers were recruited to buy the properties, again with loan proceeds fraudulently brokered by Spencer and Dols.

Also in April of 2006, Spencer conducted the same scam with the condominium owner of the Dayton Avenue units. After the closing on each of the four units, Spencer caused more than $320,000 to be paid into a sham homeowners' association account, which was then used to pay out more kickbacks to Spencer and the buyers recruited to buy the units..

On March 8, 2011, Lenton, age 32, of Oakdale, pleaded guilty to one count of conspiracy. In his plea agreement, Lenton admitted he provided appraisals for properties that falsely inflated their values to create a pool of funds to be split among him, Spencer, and the straw buyers. On March 1, 2011, Dols, age 38, of Minneapolis, pleaded guilty to one count of conspiracy. In his plea agreement, Dols admitted that his role in the conspiracy was to take loan applications in the straw buyers' names that had been filled out fraudulently by Spencer and then find lenders willing to make mortgage loans to the straw buyers based on the false information. For their crimes, Dols and Lenton face a potential maximum penalty of five years in prison.

Spencer was also convicted of convicted of bank fraud. Specifically, he defrauded Anoka Hennepin Credit Union by borrowing more than $700,000 from that institution fraudulently to purchase his home in Albertville (a transaction in which he received $73,000 back at closing without the knowledge of Anoka Hennepin Credit Union) and by taking out second mortgages against two investment properties secured by phantom equity.

For his crimes, Spencer faces a potential maximum penalty of five years in prison on the conspiracy charge, 20 years on each wire fraud count, and ten years for money laundering. He faces a potential penalty of 30 years in prison on the bank fraud charge. United States District Court Judge David S. Doty will determine the sentences of all three men at a future hearing, yet to be scheduled.

This case is the result of an investigation by the Internal Revenue Service-Criminal Investigation Division. It is being prosecuted by Assistant U.S. Attorney David J. MacLaughlin.

Source: United States Attorney's Office for the District of Minnesota

Local Mortgage Fraud news
News about local mortgage fraud.

Logout forgot

Mortgage Fraud Statistics
Government and private data on volume of mortgage fraud activity.

Mortgage Fraud Index
Dollar and index amount by quarter and state.

Mortgage Fraud Litigation
Lawsuits and settlements invoving mortgage fraud by a lender insider. From 2007 through first-quarter 2013

Mortgage Fraud News
News stories about fraud committed against home lenders.

Mortgage Fraud Blog
Actions in mortgage fraud criminal and civil cases.

local mortgage fraud

mortgage fraud links

SUBSCRIBERS: Edit Subscription | Subscription Help | or call 214.521.1300

Subscribe Contact Us Site Map

Copyright © 2017 Mortgage Daily, D a l l a s
Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

p r i c i n g engine directory

wholesale lender directory

More Mortgage News Resources (full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter


mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

real estate news

refinance news

reverse mortgage news

secondary marketing

social media

servicing news

subprime news

wholesale lenders