A plan using “straw buyers” and falsified loan data resulted in a rash of foreclosures in southern suburbs
Thursday, September 6th, 2007Authorities revealed in federal court Wednesday that they are investigating allegations of a mortgage fraud conspiracy involving about 200 houses in several southern Twin Cities suburbs.The investigation is tied to a rash of foreclosures in New Prague and New Market, and possibly other suburbs, and some people who were renting the houses have been evicted. The government estimates losses of more than $50 million.
In a subdivision called Prague Estates in New Prague, knee-high weeds have sprouted up around some of the houses. In one abandoned house, garbage was strewn across the living room floor.




investment property