Edina Broker Gets Four Years for Role in $20M Mortgage Fraud

An Edina mortgage broker was sentenced to 46 months behind bars today for his role in a $20 million mortgage fraud scheme involving 57 properties.

In a plea agreement, Derrick Ivan Lance, 41, admitted to conspiring with others between 2004 and 2007 to obtain mortgage loan proceeds based on fraudulent documents. He was convicted of one count of conspiracy to commit wire fraud.

According to U.S. Attorney B. Todd Jones, Lance's co-conspirators included Roger Bill Hanks, of Coon Rapids, who pleaded guilty in 2011 to one count of conspiracy to commit wire fraud in connection with the same case. Prosecutors believe people working with Lance identified residential properties available for purchase and recruited buyers, then told those buyers they'd receive kickbacks after the property transactions closed.

Lance's fraudulent loan applications led to loans being approved and loan proceeds being directed into the accounts of shell companies, from from which Lance and his conspirators received kickbacks.

Lance received more than $200,000 for his hand in at least 24 properties. 

(With reporting by Ryan Gauthier.)