MINNEAPOLIS (WCCO) — Two Bloomington residents could face more than 20 years in prison after being indicted for allegedly defrauding financial institutions and homeowners under a guise of a program to rescue homes from foreclosure, according to the United States Attorney’s Office.
Richard Scott Spady, 38, and Michele Denise Sengstock, 48, were charged with conspiracy to commit wire and mail fraud, wire fraud, mail fraud, and money laundering.READ MORE: 13-Year-Old Girl Found Dead After Going Missing In Lake Minnewashta
According to the indictment, Spady identified homeowners facing mortgage foreclosure or already in foreclosure proceedings and then counseled them that Unified Home Solutions (UHS), a purported nonprofit business he owned, could help them. But it was all a scheme, according to authorities.READ MORE: Angels Beat Twins 2-1, Sandoval Breaks No-Hit Bid
In the end, the indictment states, lenders and original homeowners were defrauded out of more than $8 million.MORE NEWS: Motorcycle Crash Injures 3 People In Red Wing