Mortgage fraud results in racketeering charges

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A western Wisconsin man pleaded guilty Jan. 6 to running a $10 million mortgage fraud scheme that involved homes in foreclosure in Twin Cities. James Ober of Hudson was charged in Minneapolis with racketeering.

He and his wife Wendy are among four defendants, but James Ober is the first to plead guilty. According to prosecutors, Ober and his partners found fake buyers to purchase foreclosed houses from banks at low prices. The fake buyers allegedly obtained loans, and the proceeds went to those running the scheme.

The homes were allowed to deteriorate, and they went into foreclosure again. Authorities said about 65 houses were involved in 2009 and 2010 in Minneapolis, Saint Paul, and other parts of Minnesota.

In court, Ober started to explain how the scheme worked. He’s expected to talk more about it at his next scheduled court appearance Jan 20.

Tags: crime, courts, wisconsin, business, money