Plymouth Man May Have Orchestrated the Largest Mortgage Fraud Enterprise Yet

by Alex Stenback on June 17, 2008

Jennifer Bjorhus over at the Press dropped this fantastic piece on something called Michael Prieskorn, whose now-shuttered Plymouth firm, Blackstone Sales, is under Federal investigation.  Raise your hand if you’ve heard this before:

The pitch went like this: Just show up at the closing and you’ll pocket $5,000. The investment company uses your name and credit to get a zero-down mortgage for a new home, carves its management fee from the loan and resells the property fast, handling the mortgage payments until then. Cost to you: zero.

And if, as an aspiring real estate "investor," you believed that?  We’ll stop short of saying you got what you deserved, but really. At least next time bring adult supervision when making financial decisions.

Ironically, this Michael seems to have been one of the few crooks smart enough to realize that he was commiting multiple Federal crimes – most of them seem to trundle along until the Feds roll in – and got out of dodge:

Then, last spring, Prieskorn closed his office and disappeared…His parents, who live near Ellendale, Minn., about 80 miles south of the Twin Cities, insist they don’t know. Prieskorn, who sold his Plymouth house last summer, is believed to be living around Naples on Florida’s west coast, according to last summer’s search warrant affidavit.

Our guess and hope is he hasn’t gone far enough.
Mortgage Scam Snagged Scores [PiPress - Bjorhus]

{ 1 comment… read it below or add one }

Mortgage Blog June 20, 2008 at 10:44 am

Mortgage scams seem to be on the rise. I just posted on my mortgage blog about a scam in California where 24 were bilked out of about $2,800 each but then in Maryland a couple was busted for taking $35 Million, they were focusing on those trying to avoid foreclosure. It seems to be worse now that those facing foreclosure are obviously a little distraught, it’s ridiculous people prey on others during a time like this.

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