2 Bloomington Residents Indicted For Mortgage Fraud Scam
MINNEAPOLIS (WCCO) -- Two Bloomington residents could face more than 20 years in prison after being indicted for allegedly defrauding financial institutions and homeowners under a guise of a program to rescue homes from foreclosure, according to the United States Attorney's Office.
Richard Scott Spady, 38, and Michele Denise Sengstock, 48, were charged with conspiracy to commit wire and mail fraud, wire fraud, mail fraud, and money laundering.
According to the indictment, Spady identified homeowners facing mortgage foreclosure or already in foreclosure proceedings and then counseled them that Unified Home Solutions (UHS), a purported nonprofit business he owned, could help them. But it was all a scheme, according to authorities.
In the end, the indictment states, lenders and original homeowners were defrauded out of more than $8 million.
For more, click here to see the release from the US Attorney's Office.
