Community Corner
Burnsville Man Found Guilty in Mortgage Fraud
Jury convicts Troy Chaika for his part in a scheme to defraud mortgage lenders of $43 million.
A jury found a Burnsville man of guilty today of taking part in a massive mortgage fraud that bilked lenders out of $43 million.
According to a release from the Federal Bureau of Investigation, 44-year-old Troy David Chaika fraudulently obtained millions through more than 100 residential property transactions spanning a three-year period from 2005 to 2008.
After a six-day trial at the Eighth Circuit Federal Court in St. Paul, jurors convicted Chaika on seven counts of wire fraud, three counts of mail fraud, and one count of conspiracy to commit wire fraud and mail fraud.
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Chaika was just one of many implicated in a sprawling kickback scheme that included developers, buyers and mortgage loan officers.
Chaika could face a maximum penalty of 20 years in federal prison on each count. United States District Court Judge Richard H. Kyle will impose a sentence at a future hearing, which is not yet on the court docket.
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Also awaiting sentence is co-conspirator Dustin Lee LaFavre, who pleaded guilty to one count of conspiracy in December of 2009.
Burnsville Patch will update this story as we learn more details.
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