MINNEAPOLIS—Earlier today in federal court in St. Paul, a jury convicted a 44-year-old Burnsville man of conspiring with others to bilk mortgage lenders out of more than $43 million. Following a six-day trial, the jury found Troy David Chaika guilty on seven counts of wire fraud, three counts of mail fraud, and one count of conspiracy to commit wire fraud and mail fraud. Chaika was indicted on April 12, 2010.

The indictment filed in this case and the evidence presented at trial indicated that between 2005 and 2008, Chaika conspired with others, including Dustin Lee LaFavre, prosecuted in a separate action, to obtain money fraudulently through over 100 residential property transactions. To further this scheme, Chaika and LaFavre negotiated with builders of new properties as well as owners of existing properties to buy both single pieces of property and property groupings, known as “bulk purchases,” at greatly reduced prices. Chaika and LaFavre then solicited real estate purchasers by promising they would receive large cash pay-outs, or “kickbacks,” from lenders’ funds.

Chaika and LaFavre failed to tell potential buyers about the reduced prices they had negotiated for the properties, choosing instead to quote them the grossly inflated prices. By charging buyers the higher prices, Chaika and LaFavre acquired enough cash from loan proceeds to pay buyers their kickbacks and still have money left for themselves and their co-conspirators. Once a potential buyer was recruited through this scheme, Chaika and LaFavre, or someone working on their behalf, drafted a purchase agreement that reflected the inflated sale price only and failed to disclose to lenders the kickback amount to the buyer. Occasionally, Chaika, LaFavre, or someone working for them drafted a so-called addendum to the purchase agreement, setting forth the planned kickback, or “pay-out,” to the buyer, but that document was never provided to the lender.

In several instances, Chaika and LaFavre, or others on their behalf, worked with buyers and mortgage loan officers to prepare false documents for use in the application process. In addition, Chaika and LaFavre sometimes loaned buyers money for down payments or to pad their bank balances while the application process was pending. Because of those material misrepresentations, numerous lenders agreed to fund mortgage loans for the purchase of the residential properties. Furthermore, after the mortgage loans were secured, property title companies prepared documents and handled closings based on the fraudulent information provided by Chaika and LaFavre or others on their behalf. Again, those misrepresentations were material.

In furtherance of this scheme, Chaika prompted no fewer than seven wire transfers of loan proceeds from which he and others obtained cash kickbacks. He also caused false documents to be sent through the U.S. mail and by commercial carriers on at least three occasions.

For his crimes, Chaika faces a potential maximum penalty of 20 years in federal prison on each count. United States District Court Judge Richard H. Kyle will determine his sentence at a future hearing, yet to be scheduled. On December 7, 2009, Dustin Lee LaFavre pleaded guilty to one count of conspiracy and awaits sentencing.

This case is the result of an investigation by the Federal Bureau of Investigation and the U.S. Postal Inspection Service. It is being prosecuted by Assistant U.S. Attorneys Nancy E. Brasel and David M. Genrich.

This law enforcement action is in part sponsored by the interagency Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. It includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch and, with state and local partners, investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.

Earlier today in federal court in St. Paul, three people were charged with orchestrating a scheme to defraud mortgage lenders out of approximately $4.2 million relative to a Minnetonka development. Sheri Lynn Delich, age 45, of Apple Valley; My Dinh Lam, age 30; of Minneapolis; and Ashley Elizabeth Prasil, age 26, of Eden Prairie, were charged via an information with one count of conspiracy to commit mortgage fraud. In addition, Delich was charged with one count of money laundering.

From December 18, 2006, through December of 2007, the defendants allegedly conspired to defraud mortgage lenders in connection with the marketing of the Cloud 9 Sky Flats development (“Cloud 9”). The defendants allegedly found buyers to apply for mortgage loans to purchase units in the development, the defendants and the buyers knowing that each buyer would receive a kickback of approximately 30 percent of the reported purchase price of any unit. The forms submitted to the lenders did not disclose the kickbacks to buyers. The kickback payments were allegedly returned to the buyers through an account controlled by Delich and funded with loan proceeds. Once she received kickback money, Delich allegedly skimmed off a percentage of it for herself and others and then delivered the balance to the appropriate buyer. She did not disclose these payments to the lenders.

More than 40 Cloud 9 units were sold through the scheme, and more than 80 percent of the loans have since defaulted. In excess of $4.2 million was transferred to accounts allegedly controlled by Delich. As for the money laundering charge, Delich is alleged to have accepted a wire transfer of $120,123 in fraud proceeds.

If convicted, the defendants face a potential maximum penalty of five years in prison, and Delich faces a potential maximum penalty of 20 years for money laundering. All sentences will be determined by a federal district court judge.

This case is the result of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation Division. It is being prosecuted by Assistant United States Attorney Robert M. Lewis.

This law enforcement action is in part sponsored by the interagency Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. It includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch and, with state and local partners, investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.

DALLAS—Three Dallas businessmen, Mark Manners, Robert L. Loeb, and Andrew Siebert, who were involved in a massive mortgage fraud scheme that they ran in the area, were sentenced this afternoon by U.S. District Judge Barbara M.G. Lynn, announced James T. Jacks, acting U.S. Attorney for the Northern District of Texas.

Mark Manners was sentenced to 30 months in prison, followed by three years of supervised release, and ordered to pay $1,762,362.71 in restitution.

Robert L. Loeb was sentenced to 18 months in prison, followed by two years of supervised release, and ordered to pay $2,027,841,34 restitution.

Andrew Siebert was sentenced to 60 months in prison, followed by three years of supervised release, and ordered to pay $2,027,841.34 restitution.

Their co-defendant in the scheme, Charles Cooper Burgess, 53, was sentenced in March 2008 to nearly 22 years in prison and ordered to pay more than $3 million in restitution for his role in this mortgage fraud scheme and another scheme involving golf course property in Arkansas. Burgess pled guilty in January 2006 to his involvement in two fraudulent schemes, one involving mortgage fraud and one involving defrauding individuals who invested in golf course property in Arkansas. In November and December 2006, Burgess testified about Manners and Siebert’s extensive role in the mortgage fraud scheme. At the conclusion of that trial, both Manners and Siebert were convicted.

Regarding the mortgage fraud scheme, Burgess admitted that he recruited 20 straw buyers with good credit but limited funds to sign loan and closing documents to purchase homes. As part of a signed “investor management agreement,” Burgess promised to provide the down payment at closing as well as make all mortgage payments. When Burgess’s company needed additional funds for borrower down payments, Siebert agreed to steal bank escrow funds for the borrowers’ down payment. As part of the scheme, Siebert also falsified settlement document on at least 20 loan closings. Siebert only agreed to steal these escrow funds if Burgess agreed to pay Siebert $5000 from each closing as a “kickback payment.” Evidence at trial showed that Siebert stole escrow funds on 20 separate loans and then concealed the theft of these lender funds by falsifying loan closing documents.

Siebert stole lender funds held in escrow and then provided these funds to Manners prior to closing so that Manners could purchase a cashier’s check in the name of the straw buyer. When Siebert received the cashier’s check back from Manners, Siebert falsely certified to the lender on the settlement statement that the down payment came from the borrower. On the settlement statement, Siebert also fraudulently accounted for disbursements to Burgess’ company by falsely listing the expense as a phony lien pay off, or as a “marketing and relocation fee” due to Burgess’ company. Eleven different lenders testified at trial that Siebert falsified the settlement statements to conceal his wrongful and fraudulent release of lender escrow funds. Each lender testified that the loan would never have been funded if the lender had known about the fraudulent use of lender escrow funds.

From December 2002 through March 2004, Siebert stole escrow funds which resulted in the loss of $2,027,841 to 16 different lenders. As a result of Siebert submitting false certifications on settlement statements for each of these 20 loans, Siebert and Manners fraudulently induced the disbursement of loans totaling more than $7 million.

Acting U.S. Attorney Jacks praised the investigative efforts of the Federal Bureau of Investigation and the Federal Deposit Insurance Corporation, Office of Inspector General. The case was prosecuted by Special Assistant U.S. Attorney William M. Martin of the U.S. Department of Justice Anti-Trust Division and Assistant U.S. Attorney David Jarvis.

SACRAMENTO, CA—United States Attorney Benjamin B. Wagner announced today that United States District Judge William B. Shubb sentenced Iftikhar Ahmad, 40, of Stockton, to 21 months in prison, to be followed by three years of supervised release, and restitution in the amount of $382,750 for multiple counts of mail fraud relating to a scheme involving the fraudulent submission of mortgage loan applications. Ahmad pleaded guilty on April 28, 2008.

This case was the product of a joint investigation by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation. Assistant United States Attorney Laurel Lomis Rimon prosecuted the case.

Ahmad admitted that through his company I&R Investment Properties LLC, he bought and sold numerous properties that were funded with loan proceeds fraudulently obtained from Long Beach Mortgage Company. Specifically, Ahmad secretly provided down payments to many of the buyers of the homes he was selling and aided the buyers in submitting loan applications that he knew contained false information about their income and employment. He also inflated the sales price of the properties.

Other participants in this mortgage fraud scheme have already pleaded guilty and been sentenced. John Ngo, a loan processor with Long Beach Mortgage Company, pleaded guilty on December 17, 2007 to perjury and was sentenced to nine months in prison. William Bridge, a loan broker operating The Loan Center in San Francisco, pleaded guilty on June 16, 2008 to tax charges and was sentenced to 21 months in prison, and Paul Bridge, also a loan broker at The Loan Center, pleaded guilty on June 16, 2008 to paying kickbacks and was sentenced to three years of probation.

Joel Blanford, a former account executive at Long Beach Mortgage, is charged in this investigation with mail fraud in connection with the submission of fraudulent loan applications and is awaiting trial.

U.S. Attorney Wagner stated, “This case revealed a chain of fraud running from home buyers through loan brokers and an employee of the mortgage lender. This office will continue to work with our law enforcement partners to investigate and prosecute those industry insiders who manipulated the mortgage loan process for their own financial gain.”

This law enforcement action is part of the work being done by President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes. One component of the FFETF is the national Mortgage Fraud Working Group, co-chaired by U.S. Attorney Wagner, which is tasked with combating mortgage fraud schemes. For more information on the task force, visit StopFraud.gov.

Deputy Attorney General Mark Filip and FBI Director Robert Mueller announced the results of “Operation Malicious Mortgage,” a massive multiagency takedown of mortgage fraud schemes involving more than 400 defendants nationwide who have been charged over the past three and a half months.
The operation focused primarily on three types of mortgage fraud—lending fraud, foreclosure rescue schemes, and mortgage-related bankruptcy schemes. “To persons who are involved in such schemes, we will find you, you will be investigated, and you will be prosecuted,” said Mueller. “To those who would contemplate misleading, engaging in such schemes, you will spend time in jail.”
Among the 400-plus subjects of Operation Malicious Mortgage, there have been 173 convictions and 81 sentencings so far for crimes that have accounted for more than $1 billion in estimated losses. Forty-six of our 56 field offices around the country took part in the operation, which has secured more than $60 million in assets.
During its investigative phase, we worked closely with our partner agencies—including the Postal Inspection Service, Internal Revenue Service, Immigration and Customs Enforcement, Secret Service, U.S. Trustee Program, and the Inspector General Offices of the Department of Housing and Urban Development, Department of Veterans Affairs, and Federal Deposit Insurance Corporation.
The FBI’s mortgage fraud caseload has doubled in the past three years to more than 1,400 pending cases. To address this steady growth, Mueller noted that every FBI field office focuses on this criminal priority. The Bureau also takes part in 42 mortgage fraud task forces and working groups. And we continue our joint efforts with federal, state, and local agencies.
“Our objective, as always,” said Mueller, ”is to protect the consumer and stabilize our economic markets.”
Among the Bureau’s mortgage fraud cases are 19 sub-prime-related corporate fraud investigations. Most of these corporate fraud investigations, said Mueller, deal with accounting fraud, with insider trading, and with criminal intent, the failure to disclose the proper valuations of the securitized loans and derivatives.
Deputy Attorney General Filip also said that the Justice Departments remains committed to investigating and prosecuting cases of mortgage-related securities fraud, noting today’s announcement of an indictment against two senior managers of failed Bear Stearns hedge funds.

DALLAS—Three Dallas businessmen, Mark Manners, Robert L. Loeb, and Andrew Siebert, who were involved in a massive mortgage fraud scheme that they ran in the area, were sentenced this afternoon by U.S. District Judge Barbara M.G. Lynn, announced James T. Jacks, acting U.S. Attorney for the Northern District of Texas.

Mark Manners was sentenced to 30 months in prison, followed by three years of supervised release, and ordered to pay $1,762,362.71 in restitution.

Robert L. Loeb was sentenced to 18 months in prison, followed by two years of supervised release, and ordered to pay $2,027,841,34 restitution.

Andrew Siebert was sentenced to 60 months in prison, followed by three years of supervised release, and ordered to pay $2,027,841.34 restitution.

Their co-defendant in the scheme, Charles Cooper Burgess, 53, was sentenced in March 2008 to nearly 22 years in prison and ordered to pay more than $3 million in restitution for his role in this mortgage fraud scheme and another scheme involving golf course property in Arkansas. Burgess pled guilty in January 2006 to his involvement in two fraudulent schemes, one involving mortgage fraud and one involving defrauding individuals who invested in golf course property in Arkansas. In November and December 2006, Burgess testified about Manners and Siebert’s extensive role in the mortgage fraud scheme. At the conclusion of that trial, both Manners and Siebert were convicted.

Regarding the mortgage fraud scheme, Burgess admitted that he recruited 20 straw buyers with good credit but limited funds to sign loan and closing documents to purchase homes. As part of a signed “investor management agreement,” Burgess promised to provide the down payment at closing as well as make all mortgage payments. When Burgess’s company needed additional funds for borrower down payments, Siebert agreed to steal bank escrow funds for the borrowers’ down payment. As part of the scheme, Siebert also falsified settlement document on at least 20 loan closings. Siebert only agreed to steal these escrow funds if Burgess agreed to pay Siebert $5000 from each closing as a “kickback payment.” Evidence at trial showed that Siebert stole escrow funds on 20 separate loans and then concealed the theft of these lender funds by falsifying loan closing documents.

Siebert stole lender funds held in escrow and then provided these funds to Manners prior to closing so that Manners could purchase a cashier’s check in the name of the straw buyer. When Siebert received the cashier’s check back from Manners, Siebert falsely certified to the lender on the settlement statement that the down payment came from the borrower. On the settlement statement, Siebert also fraudulently accounted for disbursements to Burgess’ company by falsely listing the expense as a phony lien pay off, or as a “marketing and relocation fee” due to Burgess’ company. Eleven different lenders testified at trial that Siebert falsified the settlement statements to conceal his wrongful and fraudulent release of lender escrow funds. Each lender testified that the loan would never have been funded if the lender had known about the fraudulent use of lender escrow funds.

From December 2002 through March 2004, Siebert stole escrow funds which resulted in the loss of $2,027,841 to 16 different lenders. As a result of Siebert submitting false certifications on settlement statements for each of these 20 loans, Siebert and Manners fraudulently induced the disbursement of loans totaling more than $7 million.

Acting U.S. Attorney Jacks praised the investigative efforts of the Federal Bureau of Investigation and the Federal Deposit Insurance Corporation, Office of Inspector General. The case was prosecuted by Special Assistant U.S. Attorney William M. Martin of the U.S. Department of Justice Anti-Trust Division and Assistant U.S. Attorney David Jarvis.

Earlier today, the last two of five defendants connected to a $20 million mortgage fraud scheme appeared in federal court in Minneapolis to plead guilty to charges in connection to that crime.
Before United States District Court Judge Ann D. Montgomery, Thanh Van Ngo, age 29, of Plymouth, pleaded guilty to one count of aiding and abetting wire fraud, and Dang Hai Nguyen, age 27, of Austin, Texas, pleaded guilty to one count of conspiracy to commit wire fraud. The two men were indicted, along with three co-defendants, on April 21, 2010. The co-defendants include Vince Long Nguyen, age 36, of Minneapolis; Jesse Steven Moxness, age 33, of Blaine; and Trung Quang Tran, age 28, of Minneapolis. The scheme involved 54 Minnesota homes and resulted in a $5 million loss to various mortgage lenders.
In their plea agreements, the defendants admitted operating the mortgage fraud scheme between 2006 and 2009. During that time period, Tran was either an owner or co-owner of several businesses that negotiated with builders to purchase residential properties at discount prices. Those properties were located in a number of Minnesota communities, including Buffalo, Coon Rapids, and St. Paul. Vince Nguyen was the owner of a business that handled real estate closings. Ngo worked as a loan officer and co-owned a company with Tran through which he too negotiated with builders to purchase residential properties at discounted prices. Moxness was a home builder, and Dang Nguyen worked to recruit real estate investors.
Ngo admitted that on November 28, 2006, he recruited a straw buyer to purchase a St. Paul residence, and that he reported false information about that buyer on the mortgage loan application so the buyer would qualify for a loan. Based on the fraudulent application, a $380,000 loan was awarded; and at closing, Ngo received a $70,753 kickback. Then, three days after closing, Ngo issued a $10,000 check to the straw buyer. The financial transactions were made via wire transfers. In all, Ngo was responsible for fraudulent activities involving 15 properties, with a related loss amount of approximately $1.7 million.
Dang Nguyen admitted that between 2007 and 2008, he too recruited straw buyers and produced fraudulent loan applications, which were then sent to various mortgage lenders and ultimately approved. Dang Nguyen also received a portion of the loan proceeds, as a “commission,” for each straw buyer he recruited. Dang Nguyen was responsible for illegal activity involving eight properties, with a related loss amount of approximately $1.3 million.
The co-defendants already have pleaded guilty. On November 3, 2010, Vince Long Nguyen pleaded guilty to one count of wire fraud. On October 29, 2010, Moxness, pleaded guilty to one count of conspiracy. And, on October 28, 2010, Tran, pleaded guilty to one count of wire fraud.
Specifically, Moxness admitted building homes that were then appraised for significantly more money than they were worth. Those homes were purchased by straw buyers through Tran and Ngo and, eventually, went into foreclosure. Moxness received a kickback of $15,000 for each residence built for the scam. Moxness was responsible for criminal activity involving nine properties, with a resulting loss amount of approximately $1 million.
Tran admitted recruiting investors with good credit to buy homes, promising them kickbacks of between $1,250 and $10,000 per purchase. Investors were told Tran’s company, Invescorp, would lease the purchased properties on their behalf and use the rental income to pay the investors’ mortgage payments and other property expenses. Investors were also told the properties would be sold for profit, to be shared by them and the defendants.
In addition, Tran admitted helping prepare false loan applications, which were submitted to mortgage lenders. Based on those fraudulent applications, more than $20 million in loan proceeds were approved. The proceeds were disbursed contrary to the understanding of the lenders, and Vince Nguyen admittedly provided false settlement statements to the lenders to conceal the fraud scheme. Tran was responsible for fraudulent activity involving 30 properties, with a related loss amount of approximately $4.8 million, while Vince Nguyen’s actions involved 34 properties, with a resulting loss amount of approximately $5 million.
For their crimes, the defendants face a potential maximum penalty of five years in prison on the conspiracy charge and 20 years on the wire fraud charge. Judge Montgomery will determine their sentences at a future hearing, yet to be scheduled.
This case is the result of an investigation by the Federal Bureau of Investigation. It is being prosecuted by Assistant U.S. Attorney Christian S. Wilton.
This law enforcement action is in part sponsored by the interagency Financial Fraud Enforcement Task Force. The Task Force was established to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. It includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement, who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The Task Force is working to improve efforts across the federal executive branch and, with state and local partners, investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.

URBANA, IL—A federal jury deliberated approximately five and one-half hours before returning guilty verdicts on all nine counts of fraud charged against Decatur real estate broker Terry Hart for his participation in a real estate “flipping” scheme Hart’s sentencing is scheduled on Jan. 20, 2011. Trial began in Urbana federal court on Sept. 21.

Hart, 58, of the 1400 block of Post Court, Decatur, was a licensed real estate broker who operated Hart Realty in Decatur when he was indicted in March 2008 with two co-defendants, Diane Shelton, 62, of the 1700 block of East Barrington, Decatur, formerly a loan officer at Staley Credit Union in Decatur, and Mark Brown, 45, of Moweaqua, Illinois, a former licensed real estate appraiser who operated a real estate appraisal business in Decatur, Illinois. The three were each charged with nine counts of mail fraud related to their participation in a scheme to defraud Staley Credit Union and various buyers of real estate in Decatur from 2002 to July 2005.

On June 22, 2009, Brown entered pleas of guilty to the nine counts of fraud. Shelton pled guilty to the nine counts on Oct. 1, 2009. Sentencing for both Brown and Shelton is scheduled on Nov. 12, 2010.

Evidence presented at trial showed the three participated in as many as 40 fraudulent real estate sale and financing transactions totaling more than $3 million in gross proceeds which generated profits to Hart of more than $600,000 and a potential loss to Staley Credit Union of more than $1 million. The defendants made false representations, including fraudulent appraisals prepared by Brown and used by Hart and Shelton, to cause buyers to purchase and Staley Credit

Union to finance residential real estate properties, some of which were owned by Hart and were financed at amounts substantially higher than their reasonable value. Hart and Shelton received payment of loan proceeds and paid appraisal fees and kickbacks to Brown. The charges are the result of an investigation by the U.S. Postal Inspection Service, the Federal Bureau of Investigation, and the Illinois State Police. Staley Credit Union cooperated and provided assistance in the investigation. The case is being prosecuted by Assistant U.S. Attorney Timothy A. Bass.

Each offense of mail fraud carries a maximum statutory penalty of up to 30 years’ imprisonment and a fine of $1,000,000. Final sentences are determined by the court. In imposing sentence, the court may consider federal sentencing guidelines, which include a defendant’s criminal history, the amount of loss, and other applicable factors.

Mark Strodtman, owner of JS Real Estate, LLC in Greeley, Colorado, was sentenced by a Weld County judge January 4 to 31 years in prison.

A jury on Nov. 18 convicted Strodtman of 23 criminal counts including one count of a pattern of racketeering under the Colorado Organized Crime Control Act; 11 counts of theft of $15,000 or more; and 11 counts of forgery of a check or commercial instrument.

In April 2007, more than 20 homeowners alleged that Strodtman and his associates from JS Real Estate LLC tricked them into buying homes out of their price range by falsifying documentation to approve their loans. The homes bought are located in the Gateway Lakes subdivision in southwest Greeley.

He had been indicted in March 2008 in connection with a mortgage fraud scheme. The indictment asserted he induced, or directed others to induce, buyers by agreeing to pay them a kickback from the proceeds of the sale of the homes, under-representing the amount of the monthly mortgage payments, and encouraging them to occupy the home prior to closing the sale.

It also alleged that Strodtman assisted in securing financing for the purchase of JS Real Estate’s homes by providing lenders with false information, including inflated incomes and assets and falsely verified employment and outstanding loans.

Strodtman failed to turn himself in to the sheriff’s department after the charges were filed. After an extensive search by the Federal Bureau of Investigation and the Weld County Sheriff’s Office that reached south to Mexico. He was arrested as a fugitive in Mexico on September 23, 2008. He was transported back to the Weld County Jail the following month.

Strodtman’s business partner in JS Real Estate, Dean Juhl, pleaded guilty on Feb. 13, 2009, to theft of $15,000 or more and to second-degree forgery. He received a four-year deferred sentence, will serve 30 days in jail, complete 100 hours of community service and pay restitution.

The charges against Strodtman could have carried a maximum sentence of 378 years: 48 years for the COCCA count, 24 years for each theft count and six years for each forgery count. Weld District Court Judge Marcelo Kopcow handed down 24 years for the COCCA count, four years for one of the theft counts and three years for one of the forgery counts. Strodtman’s sentences for the theft and forgery counts will run concurrently.