Man Sentenced for Stealing More Than $400,000 From Lenders

admin —  March 11, 2010 — Leave a comment

Micah John Beaumia, 30, Alexandria, Minnesota, was sentenced in federal court for concealing more than $400,000 in payments to himself and others from mortgage loan proceeds. Micah John Beaumia was sentenced to 36 months in prison on one count of wire fraud and one count of money laundering. Beaumia was indicted on May 11, 2009, and pled guilty on October 20, 2009.

In his plea agreement and as previously reported on Mortgage Fraud Blog, Beaumia admitted devising a scheme concealing payments from mortgage loan proceeds by diverting them to himself and another buyer of real properties through the use of fraudulent underwriting and closing documentation. Beaumia executed this scheme from 2005 through 2006 through his involvement with LHS Mortgage, Inc., located in Burnsville, Minnesota and a second Minnesota mortgage company. Beaumia acted as a mortgage broker and caused fraudulent loan application documents to be provided to potential lenders. These applications falsely overstated the true purchase price of the properties, concealed payments from the loan proceeds to Beaumia and a relative, and, in some instances, misrepresented the identity of the mortgage broker. Based on the fraudulent documentation, the proposed loans totaling more than $2.2 million were approved for 13 Minnesota properties.

After each loan was approved, the lender wire transferred funds to a Minnesota based title company. For example, $81,460.05 was wired on October 7, 2005, from New Century Mortgage Corp. to First Advantage Title. Beaumia then worked with a closing agent at First Advantage to conceal the payments.

As previously reported on Mortgage Fraud Blog, the closing agent was Jill M. Lehn, 41, Prior Lake, Minnesota. She was sentenced to two years in prison in January 2008 on one count of wire fraud and one count of money laundering in connection with a mortgage loan pay-out scheme. According to Beaumia’s plea agreement, Lehn also provided false settlement statements to conceal the scheme from lenders.

Beaumia’s concealed payments included an $18,000 check that on October 17, 2005, he endorsed over to Lucky’s Garage as partial payment for a Wild West Dragon motorcycle.

Following the sentencing, Julio LaRosa, Special Agent in Charge of the IRS-Criminal Investigation Division in St. Paul, said, “Mortgage fraud schemes, like all financial crimes, threaten the financial health of our communities. As the fraudulent financial transactions are uncovered, so are the orchestrators behind the scheme. The Internal Revenue Service-Criminal Investigation Division is committed to pursuing individuals who create such havoc and this sentencing shows they will be punished for their actions.”

This case was the result of an investigation by the Internal Revenue Service-Criminal Investigation Division. It was prosecuted by Assistant U.S. Attorney Tracy L. Perzel.

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