CASE 0:11-cr-00145-SRN Document 1 Filed 04/21/11 Page 1 of 6

U N I TED STATES D ISTRICT COURT DISTRICT OF M INNESOTA U N ITED STATES OF AMERICA,

INFORMATION

oz I \ l <-15 Sflh
-

Plainti ff, v.

1.
2.
3.

SHERI LYNN DELICH, MY DINH LAM, and ASHLEY ELIZABETH PRASIL, Defendants.

(18 (18 (18 (18

u.s.c. u.s.c. u.s.c. u.s.c.

2) 371) 1343) 1957)

THE UNITED STATES ATTORNEY CHARGES

THAT:

Factual Background
1.

The

Cloud

Sky

Flats

("Cloud

9")

is

real

estate

development in Minnetonka, 2. From not later

Minnesota. than December

18,

2006

and continuing MY DINH LAM ,

until approximately December 2007, ASHLEY ELIZABETH PRASIL, in a scheme to defraud

9

SHERI LYNN DELICH,

and others conspired and agreed to engage mortgage lenders the in connection of with the

marketing false

of. Cloud

units

t hro ugh

submission Cloud

materially Means of

information

to

lenders

financing

9 sales.

interstate wire communication were used by the course of the scheme to de fraud.
3.

scheme participants in

The to

scheme for

in volved mortgage

DEL ICH loans

and to

others

finding Cloud

buyers
un its,

willing

apply

purchase

processing the loan and property sale paperwork, sales. The participants in the scheme and the

and closing the buyer knew that

buyers were being paid approximately price

.' .

30%

o f the purported purchase The to forms submitted and to the

outside

of

the

formal the

closing. kickback

I.ii...

lenders did f" f1 t__ t..)

not

disclose

the

buyers,

APR 2 I 2011

F'UoAPR 2 1 2611
!l!!UTY ERK

1'11HAR.D D. SLETTSN, CLERK

iy s DISTRir.T COURT MPLS

J\JOGMENTENTO,__ _

CASE 0:11-cr-00145-SRN Document 1 Filed 04/21/11 Page 2 of 6

conspirators knew that the payment of funds to a proceeds was material information to a lender. 4.

buyer

from loan

The kickback payment was returned to the buyers through

an account controlled by DELICH funded by a payment from the loan proceeds. Once she had payment meant for the kickback, DELI CH

skimmed a percentage for herself and other facilitators in the deal before delivering the remaining funds to the buyer of the unit. The payments to scheme participants were not disclosed to lenders.

5.
being

The misled

transactions about the

were true

fraudulent nature

because

lenders

were

of

buyers'

financial

participation in the transactions,

and the total purchase price of

each unit sold as part of the scheme to defraud was artificially inflated by at least the amount of the kickback.

6.

Altogether over forty Cloud

units were sold through the

scheme to defraud, More than DEL I CH for

and more than 80% of the loans have defaulted. transferred the to accounts and controlled by proceeds

$4.2 million was purpose

of paying

kickbacks

sharing

with scheme participants. 7. On or about April 23, 2007, DELICH accepted a wire

transfer payment of

$120,123.00 in fraud proceeds into an account

at US Bank which she controlled and in turn shared the funds with other participants in the scheme described above.
COUNT l

(Conspiracy)
8.

Paragraphs

1-7 are hereby realleged and incorporated by

reference.

CASE 0:11-cr-00145-SRN Document 1 Filed 04/21/11 Page 3 of 6

9.

From on or about December December State 2007, and both

18,

2006 and continuing until

being approximate and

approximately inclusive,

dates

in the

District of

Minnesota

and elsewhere,

the defendants,
SHERI
MY

LYNN DELICH, DINH

LAM,

and
ASHLEY ELIZABETH PRASIL,

did unlawfully and knowingly combine, conspire, and agree with each other and others known and unknown to commit an offense against the United States, having namely, and intending to devise a scheme and

devised

artifice to defraud,

and to obtain money and property by

means of false and fraudulent pretenses, representations, and promises, for the purpose of executing the scheme and artifice, and attempting to do so, transmitted and caused to be transmitted and by means any in 1343.
OF THE CONSPIRACY

of

wire of

communication signs, Title 18,

in

interstate pictures States Code,

commerce, sounds, Section

writings,

signals, United

violation

PURPOSE
10.

The

purpose

of

the

conspiracy

was

to

defraud

lenders

financing the sale of Cloud

9 units.

MANNER AND MEANS

11. buyers of

The manner and means of the conspiracy included locating Cloud in

9

units,

agreeing a

to

pay

the

buyers

and

other 30%

participants

the

transaction

kickback of

approximately

percent of the financed price, and obtaining mortgage loans without disclosing this kickback to the lenders.
OVERT ACTS

12.

In

order

to effect the 3

object

of

the conspiracy and

in

CASE 0:11-cr-00145-SRN Document 1 Filed 04/21/11 Page 4 of 6

furtherance caused to be

of

the

conspiracy, the

co-conspirator overt act in

committed the State

and and

committed

following

District On

of Minnesota: or about that April had

23, 2007,

SHERI

LYNN

DELICH the

accepted means of

funds

been

transferred

using

interstate commerce in connection with the purchase of a Cloud 9

13.

unit. in violation of Title

18,

All

United States Code,

Section 371.
COUNT
2

(Money Laundering)
14.

Paragraphs

1-7 are hereby realleged and incorporated by

reference.

15.
Minnesota,

On or about April the defendant,

23,

2007,

in the State and District of

SHERI

LYNN DELICH,

aided and abetted by others known and unknown, a monetary transaction than and
$10, 000

knowingly engaged in

in criminally derived property of a value in and affecting interstate of a to and foreign unlawful of an

greater commerce activity,

which is,

involved the as

the

proceeds

specified wire

that

defendant part of

accepted scheme

transfer into

$120, 123. 00

obtained

the

defraud

account she controlled at US Bank NA

16.

in Eagan,
18,

Minnesota. States Code,

All

in and

violation
2.

of

Title

United

Sections

1957

CASE 0:11-cr-00145-SRN Document 1 Filed 04/21/11 Page 5 of 6

FORFEITURE

ALLEGATIONS

Counts incorporated

and if

of

this set

Information forth herein

hereby by

realleged for

and the

as

fully

reference,

purpose of alleging forfeitures pursuant to Title 18, Code Sections 981 (a) Code,

United States United States

(1) (C),

982 (a)

(1),

and Title 28,

Section 246l(c). As the result DELICH, to of the offense and 18, alleged in count
l

of

this

Information, States 98l(a) any

PRASIL, Title 28,

LAM shall United

forfeit States

to the Code,

United Section

pursuant

(1) (C)
all

and of

Title

United States Code, title, and interest or

Section 246l(c), in any and all

and

their

right,

property,

real or

personal,

which constitutes

is derived from

proceeds traceable directly or indirectly to the conspiracy charged in Count As

l of this

Information. of the offense alleged in Count 2 of this

the

result

Information, pursuant to

Defendant Title 18,

DELICH shall forfeit United States Code,

to the

United States 982(a) (1), any

Section

and all of her right, real or personal,

title,

and interest in any and all property,

involved in the violation(s) charged in Count 2,

and in any property traceable thereto. If any of the above-described forfeitable property is

unavailable for forfeiture, forfeiture United United Code, of substitute Code, Code,

the United States intends to seek the as provided for in Title Title 21, 18,

property

States States

Section 853(p), Section

as incorporated by Title 28

982 (b) (1) and

United

States

Section 246l(c). 5

CASE 0:11-cr-00145-SRN Document 1 Filed 04/21/11 Page 6 of 6

All

in

violation

of

Title

18,

United 1343,

States and

Code,

Sections United

981(a)( 1) (C), States Code,

982(a) (2) {A),

371,

and

Title

28,

Section 246 1(c). Respectfully submitted, B. TODD JONES States Attorney

United

Dated:

April 21,

20 1 1

BY:

ROBERT M.

LEWIS Attorney 249488

Assistant U.S. Attorney ID No.