 Lofts were reportedly sold to unqualified buyers A federal grand jury has returned an indictment against two local men, alleging mortgage fraud exceeding $2.5 million in connection with the sale of units in the Sexton Lofts condominium building in downtown Minneapolis, according to the U.S. Attorney’s Office. Gerald James Greenfield of Bloomington was charged with one count of conspiracy to commit mortgage fraud through the use of wires, four counts of mortgage fraud by means of interstate wire, one count of conspiracy to commit concealment money laundering, and one count of engaging in a monetary transaction with criminally derived property. Nicholas Ryan Delon Smith of Prior Lake, was charged with one count of conspiracy to commit mortgage fraud through the use of wires, four counts of mortgage fraud by means of interstate wire, and one count of engaging in a monetary transaction with criminally derived property. The indictment states that between August 2006 and May 2007, Greenfield, 64, and Smith, 30, conspired with an unnamed co-conspirator from Australia and others to defraud mortgage lenders out of money through the fraudulent purchase of condominiums in Sexton Lofts by unqualified buyers at prices exceeding the condos’ true values. The indictment said Greenfield allegedly portrayed himself as a representative of Australian Real Estate Development, while Smith, in fact, was the sole owner of two mortgage brokerage companies, Minneapolis-based Heloc, Inc., and Heartland USA, the latter being the transitory owner of some of the units at Sexton Lofts and the former allegedly serving as the brokerage company for several fraudulent loans in this scheme. In August 2006, Smith and the unnamed co-conspirator, as well as others, purportedly arranged for the sale of six Sexton Loft condo units to unqualified buyers, who bought them for greatly inflated prices and paid for them exclusively with the proceeds of fraudulently induced loans. Smith and the co-conspirator then allegedly distributed the illegal proceeds from those sales to a colluding real estate agent in the form of “high-paid realty commissions.” The real estate agent, in turn, reportedly paid the funds to the defendants and others pursuant to the co-conspirator’s instructions. After a business partner of the co-conspirator objected to the “commission” method of stripping proceeds from fraudulent sales, Greenfield was allegedly recruited to assist in selling future Sexton Loft condos through a “three-step” system. The indictment states that in step one of this system, Greenfield and the co-conspirator provided Smith and others with cash to purchase condo units for prices near true market value. In step two, the step-one cash purchasers allegedly transferred ownership of the recently acquired condos to the co-conspirator. The co-conspirator then sold the units to unqualified buyers recruited by Smith — sometimes within minutes of acquiring the property. The Sexton opened in 2006 as the condo market began to face a glut of units and a downturn in demand. After phase one of the planned two-phase project was built, no further construction took place. The Sexton sits on the eastern edge of downtown Minneapolis, near the Hennepin County Medical Center. CommentsBrooke White Mon, 17 May 2010 3:45:57 pm I was a victim of Nick Smith's property scamming, and I need more information as the IRS is holding me responsible for taxes on an 801 Washington Loft property in Minneapolis, MN. This property was put in my name and it foreclosed and I have received a 1099 holding me responsible for tax relief on $355,000. Nick Smith ran his Heloc Inc. business out of this location during 2005, 2006 time period. Any information you have that can link him to this location would be immensely helpful, and greatly appreciated. I am currently working with a tax attorney and accountant to solve this matter. Please email me back with any response. Have a great day. Sincerely, Brooke White. The Uncomfortable Truth Tue, 25 May 2010 3:21:40 pm This is the result of what happens when someone commits a crime and instead of taking full responsiblities the take the light that was shined on them and turn it onto others to lessen thier punishment. Daddy War Bucks Mon, 09 Aug 2010 10:29:48 pm I could not agree more. Joseph Huebl "Joe Nguyen" is nothing more than a penny stealing rat who tries to pass himself off as a self made man. Those of us who made our millions legally can only laugh at at this low life wanna be. He is a sad man. Leave a Reply | ArchivesApril 2010 Breaking News:
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