Burnsville man charged in mortgage and home foreclosure scams

James Michael Hayden scammed friends and associates he met through business contacts and through his children's sports and activities, netting close to a quarter-million dollars in a mortgage and home foreclosure scheme, according to charges filed in Dakota County District Court.

Hayden, 36, of Burnsville, is charged with three felony counts of theft by swindle over $35,000. He is being held in the county jail in lieu of $100,000 bail.

According to a news release from the County Attorney's Office, Hayden allegedly convinced at least nine people to invest with him and his business, JMH Properties, to buy various homes in foreclosure or about to be foreclosed upon in Burnsville, Lakeville and other communities. He allegedly promised the victims profit-sharing related to their investments once the properties had been purchased and later sold.

In most of the cases, Hayden and his business never bought the properties, the news release said. In one case, he convinced a homeowner whose home was about to be foreclosed to sell it to a third-party investor. He promised profit-sharing that the homeowner never received, and money up front, some of which was never received, the release said.

In another case, Hayden had a contractor who had invested with him on two properties also do roofing work on a home of one of Hayden's relatives. The contractor was never paid.

In total, between $200,000 and $250,000 is alleged to have been stolen in the schemes, the release said.

County Attorney Jim Backstrom asked anyone else who may have been scammed by Hayden to call Burnsville police at 952-895-4600.

Pat Pheifer