2 sentenced in Twin Cities bank fraud of more than $2.3 million

By PAUL WALSH, Star Tribune

Last update: May 12, 2008 - 11:00 PM

Two of six defendants have been sentenced for their part in mortgage fraud that cost Twin Cities area banks more than $2.3 million.

Sentenced Friday in U.S. District Court in Minneapolis were Sean B. Leaf, 35, of Woodbury, to 18 months in prison and three years' probation, and Joddilee M. Lindberg, 50, of Minneapolis to four years' probation and eight months of community confinement with work release.

Both admitted to conspiracy to commit mail and bank fraud. They, along with the others, were ordered to pay more than $2.3 million in joint restitution.

The scheme involved filing false information to banks and mortgage lenders to help applicants get loans between 2000 and August 2004.

They 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.

--Paul Walsh • 612-673-4482

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