Local Brothers Get 5 Years for $4M Mortgage Scheme
Baretta Dean Bork, a 35-year-old man from Mound, was sentenced on Thursday to five years in prison for orchestrating a $4 million mortgage fraud scheme together with his brother, Xavier Willis Bork, Minnesota's U.S. Attorney's office said.
Xavier, a 32-year-old Eden Prairie resident, received the same sentence last week. Each of the brothers was sentenced on one count of conspiracy to commit mortgage fraud through the use of wires and income tax refund fraud. The scheme defrauded 24 area lenders, according to the U.S. Attorney's office.
The brothers were charged on January 31, and they both pleaded guilty on March 9.
The Borks worked as loan officers through several mortgage brokerage companies located primarily in the Mankato area. According to the U.S. Attorney's office, the brothers admitted that between December 2003 and March 2008, they engaged in a scheme by recruiting straw buyers to purchase 33 properties and completing false mortgage loan applications on behalf of those buyers.
To prompt lenders to grant loans to the straw buyers, the Borks allegedly exaggerated income figures and lied about the employment status of those straw buyers. They also omitted information about other loan obligations the buyers had already incurred.
In addition, the Borks admitted to recruiting 26 people to file false income tax returns, claiming refunds totaling more than $154,000. They provided those filers with false W-2 forms that indicated that they worked for the Borks.