Edina Mortgage Broker Sentenced For $20M Fraud
An Edina mortgage broker was sentenced this week for his role in a $20 million mortgage fraud scheme that involved 57 properties, according to Minnesota’s U.S. Attorney’s office.
Derrick Ivan Lance, who was charged in July 2011 and pleaded guilty later that year, was sentenced to three years and 10 months in prison on one count of conspiracy to commit wire fraud. In addition to the prison term, his sentence includes three years of supervised release.
In his plea agreement, Lance admitted that between 2004 and 2007, he worked with others to obtain mortgage loan proceeds using fraudulent documents, according to the U.S. Attorney’s office. He and others recruited buyers to purchase properties, and his co-conspirators told the buyers they’d receive financial kickbacks after the deals closed. Lance helped prepare and submit false mortgage loan applications, which misrepresented the buyers’ true financial situation.
Lance ultimately received more than $200,000 for assisting buyers in securing mortgage loans for at least 24 properties, Minnesota’s U.S. Attorney’s office said.