A western Twin Cities man has been sentenced to more than 12 years in prison for orchestrating a mortgage fraud scheme that cost lenders about $2 million.
Thirty-nine-year-old Alpha Mshihiri of Independence was sentenced Monday in U.S. District Court in Minneapolis. Jurors deliberated for less than a day in February before convicting him of bank fraud, wire fraud and mail fraud, and conspiracy to commit bank fraud
The Star Tribune reported Mshihiri’s sentence includes five years’ supervised release and an order to pay restitution.
Prosecutors contend the onetime licensed mortgage broker and his co-conspirators defrauded lenders for millions of dollars by recruiting straw buyers, falsifying loan applications and other documents, and inflating real-estate purchase prices.
The U.S. Attorney’s office says every property purchased through the scheme went into foreclosure.