Real Estate Agent Admits Scheme

admin —  March 26, 2008 — 1 Comment

Michael John Sorensen, Jr., 40, Anchorage, Alaska, pleaded guilty to wire fraud associated with kickbacks he received from home sales in Anchorage, Alaska.

In connection with the guilty plea, Assistant United States Attorney Retta Randall advised the court that Sorensen was a real estate agent licensed by the State of Alaska and an associate broker with ReMax Properties, Inc. Sorensen also owned a remodeling and construction company called Right Way Construction. Using Right Way Construction, Sorensen devised a scheme to obtain money by means of material false representations. The purpose of his scheme was to financially assist buyers and defraud various mortgage lenders by submitting false invoices from Right Way Construction to title companies, who then prepared false settlement statements which reflected payments for repairs and remodeling work which were never done to the properties. The false settlement statements were relied upon by the mortgage companies when they wired funds for the mortgage loans from outside the State of Alaska to title companies in Alaska who conducted the closing on each transaction. The amounts paid by the title companies to Right Way Construction pursuant to the false invoices were then given to the buyers by Sorensen after closing as a cash-back scheme without the knowledge of the mortgage lenders. Cash backs operate by falsely inflating the sales price of a property.

Sorensen surrendered his real estate license and pursuant to a plea agreement filed with the court, also agreed to pay a fine, which, at a minimum, will equal the total of the commissions he personally received from the sales of the properties alleged in the indictment.

Sentencing is scheduled for Friday, May 30, 2008, at 9:00 a.m. The law provides for a total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the criminal history, if any, of the defendant.

Pending sentencing, the court continued Sorensen on bond.

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One response to Real Estate Agent Admits Scheme

  1. Just an FYI for all Butte County, CA and surrounding area residents. Michael Sorensen has now managed to slither his way down to CA with full intensions of committing further Real Estate Fraud. Michael has managed to deceive the Probate Court into appointing Michael a Trustee of a Trust which is solely consists of nothing else but multiple Real Estate Properties. When Michael tried to blackmail his sister into committing fraud on the Trust and she refused, Michael petition the court to have her removed and go figure – Judge Barbara Roberts removes Michaels Sister on a procedural failure to respond to Michaels Petition in a timely manner, which was actually a failure of her attorney. Well, it was found out just today that Judge Barbara Roberts would prefer to have a known convicted mortgage fraud felon and AK resident to be in charge of the management of multiple Real Estate Properties located here in CA. It was her absolute choice to maintain this new appoint of Michael Sorensen as Trustee over a procedural rather than to hear the case on its merits. As if our economy has not already suffered enough, Judge Roberts is going to promote putting a non-CA resident who is on Probation for Mortgage Fraud in charge of managing and selling Real Estate in CA. Yes, I’m angry, as I am one of the beneficiaries of this Trust that Michael is not in charge of and he is obviously going to screw the beneficiaries out of everything, not to mention what kind of Fraud Michael intends to bring on next, here in CA. I think that it’s an outrage that a CA judge would actually knowingly contribute to the very activities that have brought our economy to it’s knees by appointing and keeping a known convicted felon who is still on probation for mortgage fraud in the direct position of managing Real Estate. What’s wrong with this picture?????? PS. Michael’s sister who was removed as Trustee, now 44 years old, did serve her country in the US Air Force and was honorably discharged, has never in her entire life been charged with or convicted of any crimes.

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