Inver Grove Man Facing Life in Prison Amid Mortgage Fraud Scheme

A 53-year-old Inver Grove Heights man has been indicted on federal charges of soliciting buyers to purchase properties at inflated prices in a multimillion-dollar mortgage fraud scheme, according to a statement released today by the U.S. Attorney's Office.

On July 11, Christopher Jon Andrews was charged with one count of conspiracy to commit mail and wire fraud, four counts of mortgage fraud through interstate wire, and three counts of mortgage fraud through mail.

If convicted, Andrews faces a potential maximum penalty of 20 years in prison on each count.

The indictment, which was filed on July 10, alleges that from 2005 through 2008, Andrews conspired with others to defraud mortgage lenders out of money by providing false information in order to receive loans.

To that end, Andrews recruited straw buyers to purchase homes at inflated prices, purportedly using much of the excess loan funds for their personal use. 

In preparing mortgage loan applications on behalf of the straw buyers, Andrews allegedly concealed the true financial conditions of those buyers. Moreover, he reportedly failed to disclose that the buyers would receive cash kickbacks from the loan proceeds and that the buyers were often not the source of the "cash to close" the transactions.

More than 30 properties were purchased by Andrews and his close relatives during the course of this scheme, with him allegedly receiving millions of dollars in loan proceeds. The majority of the residences bought through this scheme have been since foreclosed, with the victim lenders losing substantial amounts of money. 

Andrews conducted business under several names, including ACL Homes, LMA Real Estate Services, and CNC Management. He worked with associated companies operated by indicted co-conspirators Daniel Boler, Susanne Mathis, and Lindsay Loyear.

Boler, Loyear and Mathis have all pleaded guilty for their actions. 

This case is the result of an investigation by the United States Postal Inspection Service and the Federal Bureau of Investigation. It is being prosecuted by Assistant U.S. Attorney Tracy L. Perzel.

This law enforcement action is in part sponsored by the interagency Financial Fraud Enforcement Task Force.

Source: U.S. Attorney's Office