Eagan mortgage firm owner admits to $1.8 million in fraud
An Eagan mortgage company owner pleaded guilty to defrauding several financial institutions out of about $1.8 million and using some of the money to buy homes and “support a lavish lifestyle.”
John M. Rubischko, 36, entered his plea Friday in U.S. District Court in St. Paul. Rubischko was charged June 16 with wire fraud and aggravated identity theft.
Rubischko, who owned and operated Family First Mortgage, All Fund Mortgage and MortgageBanc.us., devised a scheme from January 2003 through June 2007 that allowed him to use the identities and personal information of other individuals without their knowledge or authorization to obtain about $1.8 million in bank loans, bank credit and mortgages.
Rubischko used the money from these transactions to buy homes and personal property. According to the plea, Rubischko used his mother’s name to buy property in Prior Lake.
He directed bank employees to notarize forged documents, create false documents, misapply funds from bank loans and credit transactions for his benefit and to conceal the transactions from the individuals whose identities he had used.
Rubischko regularly did business with Bremer Bank, according to a sworn statement filed by Rachel Williams, a special agent with the U.S. Postal Inspection Service.
Williams said some of the fraudulent financial transactions included mortgage loans, lines of credit, home equity loans, credit card applications, loan payoffs and vehicle loans.
Rubischko apparently used the money to “support a lavish lifestyle including luxury cars, extravagant gifts and parties for family and friends, and renovating and remodeling his home,” Williams said.
Rubischko, who paid the bank employees for these fraudulent actions, faces a potential maximum sentence of 30 years in prison and a substantial fine. Sentencing has yet to be scheduled.
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Tags: Mortgage