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Judge says Marlon Pratt's greed should be spelled with a capital G. The mortgage loan officer's crimes ravaged north Minneapolis.
Despite the defendant's pleas that the world needs a Christian man like him, a Hennepin County judge Thursday gave Marlon Pratt 10 years in prison, more time than the prosecutor sought for 17 theft by swindle and two racketeering convictions.
"There is greed and then there is greed," Judge Steven Lange said in his stern, deep voice. "In this case, it's my considered judgment your greed should be spelled with a capital 'G.'"
Lange said Pratt had pocketed at least $700,000 in his mortgage fraud scams that ran from 2004 to 2007 and ultimately resulted in 17 homes, primarily in north Minneapolis, going into foreclosure. The scams involved $3.2 million in loans.
Pratt, wearing a loose dress shirt over blue jeans, occasionally sipped from a straw in a cup as Lange spoke. He and his lawyer, Larry Reed, are appealing the convictions as well as Lange's role in the case. So far they have not been successful. The state Court of Appeals on Wednesday declined to take up the issue involving Lange.
Reed wants Lange removed for an alleged conflict of interest because the judge had been preliminarily retained as an expert witness for the defense in a federal lawsuit against the Hennepin County Medical Center, a Minneapolis police sergeant and an emergency room physician.
Reed said he intends to appeal "everything," saying there was no theft by his client. "Mr. Pratt cannot be held responsible for the mortgage loan crisis," he said.
But Lange said Pratt's crimes contributed to bank collapses and the billions of dollars needed for bailouts.
The retired judge, who took the case on special assignment, said Pratt's attitude was "If I can get away it, I will get away with it."
He also said Pratt, 34, of Brooklyn Park, showed a "complete lack of insight and responsibility" when he asked in an interview with his probation officer, "Who did I victimize?"
Assistant Hennepin County Attorney Tom Fabel asked for more than eight years in prison, saying Pratt wasn't just a contributor but a leader in crimes that ravaged north Minneapolis. Rather than express remorse, Pratt told his probation officer that he was being picked on and that the community needed him.
In his comments, Pratt turned to the courtroom audience that included many of his family members and said he grew up in the projects and saw children do unimaginable things. He said he had "never done anything" to merit prison time.
"The world needs a person like me, and I can't apologize for that," Pratt said, also invoking his Christianity.
Loan frauds, kickbacks
In a trial that lasted nearly two months and included 1,000 pages of exhibits, the prosecutors sought to prove that Pratt, as a mortgage loan officer, inflated the true price of the property on loan applications, then took the difference between the sale price and the loan as a kickback.
In some cases, he also "facilitated loan frauds" by advancing money to borrowers for down payments. Lenders generally require down payments to come from the borrowers' own assets.
The first incident occurred when Pratt took a $13,000 kickback in November 2004 on a house in Brooklyn Center. The final count alleged he took a $33,200 kickback in October 2006.
Lange said the "pervasive, sophisticated swindle" that occurred merited the longer sentence for Pratt, who had no prior criminal convictions. He also fined Pratt $500,000 and ordered him taken into custody immediately.
Pratt turned and gave a peace sign to his family, saying, "I love you all."
He is among six men who were convicted or pleaded guilty for their roles in the fraud perpetrated by Universal Mortgage involving homes in north Minneapolis, Brooklyn Center and Golden Valley.
Prosecutors now are looking to prosecute Pratt on other charges involving straw buyers for homes. Hennepin County Attorney Mike Freeman has made prosecution of mortgage fraud a priority.
Rochelle Olson • 612-673-1747
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