Maple Plain Man Sentenced To 150 Months In Prison For Stealing Millions From Mortgage Loan Lenders
United States Attorney Andrew M. Luger today announced the sentencing of ALPHA RASHIDI MSHIHIRI, 39, to 150 months in federal prison for orchestrating a multi-million dollar mortgage fraud conspiracy. MSHIHIRI was convicted, on February 20, 2014, following a seven-day trial, of each count of the indictment against him, including Conspiracy to Commit Bank Fraud, Bank Fraud, Mail Fraud, and Wire Fraud. He was sentenced on December 8, 2014, before Senior Judge David S. Doty in U.S. District Court in Minneapolis.
As proven at trial, between 2007 and 2009, MSHIHIRI, who was once a licensed mortgage broker, and his co-conspirators defrauded a number of lenders for millions of dollars by recruiting straw buyers, falsifying loan applications and other documents, and inflating real estate purchase prices. As part of the conspiracy, straw buyers submitted fraudulent loan applications to mortgage lenders. In some instances, they used stolen identities to fill out loan applications.
In support of fraudulent loan applications, MSHIHIRI and his co-conspirators also created false documents, such as W-2s, paystubs, driver’s licenses, and bank statements, which straw buyers submitted to mortgage lenders to obtain financing. In some instances, the proceeds of the loans were used to pay existing mortgages, financially benefitting MSHIHIRI and others. The scheme also included MSHIHIRI’s involvement in kickbacks to GWP and Pristine Home Loans, companies he owned and operated. Every property purchased through the scheme went into foreclosure, resulting in nearly $2 million in losses to the victim lenders.
This case resulted from an investigation conducted by the Internal Revenue Service-Criminal Investigation, the Minnesota Financial Crimes Task Force, the United States Secret Service, and the U.S. Department of Housing and Urban Development – Office of Inspector General.
The case was prosecuted by Assistant U.S. Attorneys Lola Velazquez-Aguilu and David Genrich.
The U.S. Attorney’s Office reminds people to protect themselves from mortgage fraud. For more information, visit http://www.stopfraud.gov/protect-mortgage.html.
ALPHA RASHIDI MSHIHIRI, 39
Maple Plain, Minn.
• Conspiracy to Commit Bank Fraud, 1 count
• Bank Fraud, 3 counts
• Wire Fraud, 2 counts
• Mail Fraud, 1 count
• 150 months in prison
• Five years supervised release