Woman Charged in Minnetonka Mortgage Scheme

A 29-year-old St. Paul woman has been charged with participating in a scheme to defraud mortgage lenders out of more than $5 million. Lindsey Rae Loyear was charged via an information with one count of conspiracy to commit mortgage fraud.

From 2006 through October of 2008, Loyear allegedly conspired with others to defraud mortgage lenders in connection with financing real estate transactions in the Twin Cities, including the purchase of development in Minnetonka. The scheme reportedly involved the submission of false information to lenders in order to obtain mortgage loans.

As a real estate agent and mortgage broker, Loyear allegedly concealed information from potential lenders, including that she had arranged short-term loans to buyers to use as down payments and had paid cash kickbacks to buyers for purchasing the properties.

Altogether more than 130 units were sold through the scheme, and more than $8 million was transferred to accounts, which were then allegedly used to pay kickbacks and share loan proceeds among co-conspirators.

If convicted, Loyear faces a potential maximum penalty of five years in prison. All sentences will be determined by a federal district court judge.

This case is the result of an investigation by the Federal Bureau of Investigation and the United States Postal Inspection Service. This law enforcement action is in part sponsored by the interagency Financial Fraud Enforcement Task Force.