A Minnesota mortgage originator was fined $2.2 million and had his license revoked for running a mortgage fraud scheme that paid straw buyers to purchase homes at inflated values.
The Minnesota Department of Commerce took action against Michael Prieskorn for his alleged role in the scheme. Prieskorn cannot be found and has not been criminally charged. Others have also had their licenses revoked for participating in the alleged scheme.
The Commerce Department claims Prieskorn used inflated appraisals and straw buyers in the purchase and then kept the money instead of making the mortgage payments.
