Industry News

Minnesota man sentenced in real estate loan fraud

Former banker created more than 50 fraudulent loans

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A former Wells Fargo banker in Minnesota was sentenced in a U.S. District Court Thursday to 48 months in prison for loan fraud, media accounts said. David Slominski was also ordered to pay $837,000 in penalties to the federal government and $800,000 in restitution to Wells Fargo, the Minneapolis/St. Paul Business Journal reported. Slominski will serve his sentence in a Duluth correctional camp, reports said. Slominski, who worked at the Wells Fargo branch in Lakeville, Minn., was convicted of creating more than 50 fraudulent loans totaling more than $3 million that he issued to customers without their knowledge between 1999 and 2005, according to reports. He reportedly kept $750,000 of the proceeds to pay credit card bills, travel costs, college tuition for his children and other expenses, reports said. Slominski made a voluntary surrender May 14 to the charges after one of his clients called Lakeville Police about suspicious credit lines and loans on the client's account, according ...