Scheme involved Chateau Ridge condos in Burnsville.
Updated: November 13, 2012 - 6:59 AM
A 43-year-old Minneapolis man pleaded guilty Friday to defrauding mortgage lenders out of millions of dollars related to the sale of condominiums in Burnsville.
Jared Mitchell Rothenberger pleaded guilty to one count of conspiracy to commit wire fraud in a scheme involving the Chateau Ridge condo development. Charged last month, he entered his plea Friday before U.S. District Judge Susan Nelson in Minneapolis.
In his plea, Rothenberger said that he was part of a conspiracy to defraud mortgage lenders in 2006 and 2007 by finding buyers to apply for loans to purchase units at Chateau Ridge. He said he provided buyers with funds for down payments and closing costs, and then was reimbursed after the sales by the property's seller. These actions were not disclosed to lenders. He also participated in the distribution of mortgage loan proceeds outside the property closings. Some of the funds were paid to management companies set up to channel kickbacks to people involved in the scheme, according to the U.S. attorney's office.
Rothenberger faces a maximum penalty of five years in prison and possible fines. He will be sentenced at a later date, which has not been set.
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