Two mortgage fraud defendants plead guilty

Article by: Dan Browning , Star Tribune
Updated: August 30, 2007 - 10:31 PM

Two of six defendants charged this month with conspiracy to commit mortgage fraud pleaded guilty Thursday in federal court in Minneapolis.

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Two of six defendants charged this month with conspiracy to commit mortgage fraud pleaded guilty Thursday in federal court in Minneapolis.

Christopher Adam Horton, 34, of Minnetonka, and Sean Brian Leaf, 34, of Woodbury, admitted to participating in a scheme to file fraudulent information to banks and mortgage lenders to help applicants get loans between 2000 and August 2004.

The two men concealed the fact that a brokerage called First Rate Mortgage Group actually had lent applicants money for their down payments, according to the U.S. Attorney's Office.

In addition, the defendants submitted loan applications that included inflated financial information, false employment information, forged signatures, and phony and altered pay stubs.

In one case in 2004, the defendants submitted fraudulent documents so that a borrower could buy property in Wayzata with a $1.33 million loan from Washington Mutual Bank and a $378,555 loan from Associated Bank, the government said.

The defendants face up to five years in prison when they appear for sentencing later before U.S. District Judge Joan N. Ericksen.

Their four codefendants also are expected to plead guilty: Micah Daniel Thormodsgaard, 25, of St. Paul, is scheduled to plead today; Joddilee Margaret Lindberg, 50, of Blaine, on Sept. 18; and Edward Arnold Septon, 58, address unknown, and Christopher Erik Septon, 34, of Plymouth, on Sept. 21.

The case was investigated by the FBI and the U.S. Postal Inspection Service.

Dan Browning • 612-673-4493

Dan Browning • dbrowning@startribune.com