3 people charged in mortgage fraud case

Article by: Steve Brandt , Star Tribune
Updated: September 20, 2007 - 11:41 AM

Three people associated with a suburban developer have been charged with racketeering and theft in a case alleging mortgage fraud based on property-flipping.

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Three people associated with a suburban developer have been charged with racketeering and theft in a case alleging mortgage fraud based on property-flipping.

The Hennepin County attorney's office filed eight charges each against the three defendants: Scott R. Rosenlund of Chaska, president of 10Spring, a home building and development company; Celeste Skaar of Orono, owner of New Day Capital, a mortgage brokerage; and Shinon Lindberg of Greenwood, who allegedly recruited straw buyers for the flipped properties.

The complaint against them alleges that they worked together to find buyers for properties that were bought and resold, often the same day, for a big gain in price. The profit from the inflated mortgage they allegedly obtained was them split among the three alleged conspirators and the buyer.

"With the number of crimes committed here, these people should do some time," Hennepin County Attorney Michael Freeman said at a news conference. 10Spring's phone was not answered.

Freeman's office said that an investigation has found eight properties financed by three separate lenders. Public records indicate same-day purchase-resales by 10Spring in Chanhassen, Victoria, Minnetonka and Chaska.

Steve Brandt • 612-673-4438

Steve Brandt • sbrandt@startribune.com