'How to Ruin Your Life' author sentenced in mortgage scheme

By DAN BROWNING, Star Tribune

Last update: January 11, 2008 - 11:00 PM

Two more people convicted of a fraud scheme run through LHS Mortgage in Burnsville were sentenced this week in a St. Paul federal court.

U.S. District Court Judge Paul Magnuson sentenced Jill Lehn, 40, of Prior Lake, to two years in prison and three years of supervised release. Lehn had pleaded guilty to one count of wire fraud and one count of money laundering related to a mortgage loan pay-out scheme,

Court documents show that from 2004 to 2006, Lehn had worked as a loan closing agent or buyer in 60 deals with 10 lenders. She helped conceal fraudulent payments in excess of $3.2 million, personally receiving more than $444,000.

According to the government, the property buyers signed the loan documents knowing they overstated the price of the properties. Lehn sent sham documents to lenders concealing kickbacks to the buyers and others.

Federal sentencing guidelines recommended a prison term of 51 to 63 months for Lehn. But Magnuson gave her a lower sentence Thursday in recognition of her "extensive" cooperation with the government. Lehn provided information that resulted in "numerous prosecutions and investigations" of other mortgage fraud schemes. Lehn also published her story, "Tips On How To Ruin Your Life," in an effort to convince others in the industry not to follow her path.

Isadore Stewart, 40, of Stillwater, was sentenced Wednesday to 18 months in prison and three years of supervised release. He pleaded guilty to obtaining concealed payments as a buyer of three properties in the scheme.

Mario Augustin Lewis, a former employee of LHS, was sentenced recently to 4 1/2 years in prison for his part in the scheme. Ronald Joseph, an owner of LHS, still awaits sentencing.

Dan Browning • 612-673-4493

Recent Local + Metro stories

Hoped-for education boost takes back seat as states use stimulus money to stay afloat - January 11, 2008

Hoped-for education boost takes back seat as states use stimulus money to stay afloat - Projects in some of the nation's poorest areas don't appear to be getting a fair shake in the spending of $787 billion in stimulus funds, the chairman of the House oversight committee said Wednesday. More