Minnesota Man Accused Of Sale Leaseback, Foreclosure Rescue Ripoffs Cops Plea To Money Laundering, Tax Dodging Charges; 50+ Victims Clipped For $2.46M

In Minneapolis, Minnesota, the Star Tribune reports:

• When Timothy Beliveau appeared in federal court Tuesday to plead guilty to money laundering and tax evasion charges,(1) he didn't mention the people who allegedly lost their home equity in his "foreclosure rescue" plan, or the Northwest Airlines pilots who unwittingly helped fund the fraud scheme.(2) Instead, Beliveau, 42, explained to U.S. District Judge James Rosenbaum that he had laundered money by commingling his investors' money with his own, and then using the money to buy luxuries for himself.

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• Six pilots and one flight attendant told the Star Tribune in 2007 that they had sunk more than $1.5 million into two of the Mound man's real estate ventures. Some took out second mortgages on their homes and raided savings for the cash, hoping to offset pending salary cuts. They said they believed their money would be used to help people who were struggling to keep paying for their homes.

• People like Telsche Paulson, 87, who was trying to hang on to her Minneapolis duplex after her husband died and her downstairs tenants moved out. Beliveau's company sent her a letter offering to save her home from foreclosure. One of the investors bought the property and sold it to one of Beliveau's relatives. But Paulson ultimately lost her home and moved to Farmington. She received $116,972 from a state fund for victims of unscrupulous real estate professionals.(3) Beliveau's plea agreement says the fraud he committed resulted in losses of $2.46 million for more than 50 victims.

For more, see Equity skimmer admits to crimes (A mortgage company owner told a court he's guilty of money laundering and tax charges).

For the U.S. Attorney press release, see Mound man pleads guilty to charges in connection with real estate fraud scheme.

(1) For the indictment, see U.S. v. Beliveau.

(2) See NWA pilots say they were misled in foreclosure venture (A Minnesota couple's investment and real-estate programs are under federal investigation).

(3) See State Recovery Fund To Cough Up $116K+ To Compensate Elderly Victim Of Bogus Sale Leaseback Equity Stripping Scam Involving Licensed Real Estate Agent.