Kerry Jon Quam, 46, Eagan, Minnesota, was sentenced on September 7, 2011, to three years of probation on one count of conspiracy to commit mail fraud for his role in submitted false loan applications and fraudulent appraisals to lenders. He was charged on September 3, 2010, and pleaded guilty on November 4, 2010.
In his plea agreement, Quam admitted processing numerous false loan applications that were submitted to financial institutions. The falsifications included fraudulent appraisals and concealed payments and other information from lenders. In addition, Quam admitted aiding others connected to the scheme in preparing fraudulent appraisals with false statements that fraudulently inflated the appraised value of the property, and closing fraudulent loans that misrepresented and concealed material information from mortgage lenders. For each transaction, Quam received a fee.
This case is a result of investigations by the Federal Mortgage Fraud Task Force, including the Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation Division and the U.S. Postal Inspection Service. The case was prosecuted by Assistant U.S. Attorneys Charles J. Kovats, Jr. and John R. Marti.