Owners Of Mortgage Brokerage And Title Closing Company Plead Guilty In Mortgage Fraud Scheme
MINNEAPOLIS—Late yesterday in federal court in St. Paul, the owner of a mortgage
brokerage and the owner of a title closing company pleaded guilty for their roles in a mortgage
fraud scheme involving undisclosed kickbacks to buyers, including some in the Cloud 9 Sky
Flats development. Daniel Douglas Boler, age 42, of Maple Grove, and Susanne Eileen Mathis,
age 42, of Minnetonka, pleaded guilty to one count of conspiracy to commit mail and wire
fraud. They were charged on December 23, 2011, and entered their pleas before United States
District Court Judge Paul A. Magnuson.
In their plea agreements, the defendants admitted that from 2007 through 2008, they
obtained money loan proceeds under fraudulent pretenses on behalf home buyers associated
with an unnamed investment group. Boler owned Team Access, a licensed mortgage brokerage,
and worked as a loan officer at that brokerage. Mathis owned Trend Title and closed residential
real estate transactions. Both admitted using the U.S. mail and commercial carriers, as well as
interstate wire transfers, during the course of the scheme. The loss to victim lenders because of
their criminal wrongdoing is between $7 million and $20 million.
To further this conspiracy, Boler prepared mortgage loan applications to secure residential
mortgage loans for buyers involved in an investment group managed by a person known in
court documents as Individual A. Boler admitted making false representations on those
applications, including inflating the incomes of buyers and failing to disclose that buyers would
receive cash kickbacks from mortgage loan proceeds. In total, Boler secured mortgage loans for
the purchase of approximately 108 properties.
For her part, Mathis admittedly closed approximately 88 fraudulent transactions for the
investment group, specifically concealing from mortgage lenders the fact that property
purchasers received kickbacks from mortgage loan proceeds and that the buyers were often not
the source of the “cash to close.” The kickbacks were disguised as prepaid management fees
and facilitator fees. In addition, Mathis closed between eight and ten transactions in the Cloud 9
development, which also involved undisclosed buyer kickbacks.
For their crimes, the defendants face a potential maximum penalty of 20 years in prison.
Judge Magnuson will determine their sentences at future hearings. This case is the result of an
investigation by the U.S. Postal Inspection Service and the Federal Bureau of Investigation and
is being prosecuted by Tracy L. Perzel.
This law enforcement action is in part sponsored by the interagency Financial Fraud
Enforcement Task Force. The task force was established to wage an aggressive, coordinated
and proactive effort to investigate and prosecute financial crimes. It includes representatives
from a broad range of federal agencies, regulatory authorities, inspectors general, and state and
local law enforcement who, working together, bring to bear a powerful array of criminal and
civil enforcement resources. The task force is working to improve efforts across the federal
executive branch, and, with state and local partners, investigate and prosecute significant
financial crimes, ensure just and effective punishment for those who perpetrate financial crimes,
combat discrimination in the lending and financial markets, and recover proceeds for victims of