Lindsey Rae Loyear, 30, St. Paul, Minnesota, pleaded guilty to participating in a scheme to defraud mortgage lenders out of between $2.5 and $7 million. Loyear pleaded guilty to one count of conspiracy to commit mortgage fraud.

The defendant, who was charged on December 7, 2011, entered her plea before United States District Court Judge Susan Richard Nelson.

In her plea agreement, Loyear admitted that from 2006 through October of 2008, she conspired with others to defraud mortgage lenders in connection with financing real estate transactions in the Twin Cities. The scheme involved the submission of false information to lenders in order to obtain mortgage loans.

Loyear admitted concealing information from potential lenders, including that short-term loans were given to buyers to use as down payments and that she had arranged payment of cash kickbacks to buyers for purchasing the properties. Altogether more than 90 units were sold through the scheme.

For her crime, Loyear faces a potential maximum penalty of five years in prison. Judge Nelson will determine her sentence at a future hearing, yet to be scheduled.

This case is the result of an investigation by the Federal Bureau of Investigation and the U.S. Postal Inspection Service. It is being prosecuted by Assistant U.S. Attorneys Robert M. Lewis and Tracy L. Perzel.

This law enforcement action is in part sponsored by the interagency Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. It includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and, with state and local partners, investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.