One of the largest mortgage frauds in state history will be brought to trial by a U.S. District Court in St. Paul in March.
Michael Prieskorn and Richard Laho pleaded not guilty to charges of mortgage fraud that occurred between 2006 and 2007 in a federal court in Minneapolis on Wednesday, according to the Star Tribune
Prieskorn, 35, and Laho, 54, allegedly payed potential homeowners $5,000 to use their names and credit histories to buy homes and quickly resell them in Minnesota and Florida. The end result of those transactions led to ruined credit histories and a long list of foreclosures, according to the Star Tribune.
Prosecutors are focusing on 70 transactions that the two were apart of, but investigators are saying that the alleged scam included Prieskorn and Laho buying several hundred properties over several years, according to the Pioneer Press