A federal jury on Tuesday convicted a 44-year-old Burnsville man in a scheme that bilked $43 million out of local mortgage lenders.

Troy David Chaika was found guilty of seven counts of wire fraud, three counts of mail fraud, and a count of conspiracy to commit wire fraud and mail fraud. According to the indictment, Chaika and Dustin Lee LaFavre carried out a scheme between 2005 and 2008 that involved more than 100 residential property deals in the Twin Cities area.

Chaika and LaFavre negotiated with builders of new properties as well as owners of existing properties to make bulk purchases at discounted prices. They then solicited buyers -- promising kickbacks -- to buy those properties at grossly inflated prices. The men would pocket a sizable chunk of the difference.

In several instances, Chaika, LaFavre and others worked with buyers and loan officers to prepare false documents to use in applying for mortgages. Chaika and LaFavre sometimes lent buyers money for down payments or to pad their bank balances to help them qualify for larger mortgages.

Chaika faces 20 years in federal prison on each count. He will be sentenced later. LaFavre pleaded guilty to conspiracy in December 2009 and awaits sentencing.

JAMES WALSH