Charges: Eagan Man Behind $3 Million Mortage Fraud Scheme

An Eagan man faces federal charges for allegedly masterminding a two-year, $3 million mortgage fraud scheme targeting lenders.

Tonii Carlos Greene, 52, is charged with two counts of conspiracy to commit wire fraud, two counts of conspiracy to commit money laundering, seven counts of wire fraud, two counts of money laundering and one count of monetary transactions in criminally derived property. If convicted, Greene faces a maximum penalty of 20 years in prison on each count of wire fraud and money laundering.

Investigators say Greene gave false information to lenders financing the sale of rundown homes that Greene claimed to be rehabilitating and selling. Greene allegedly told investors that larges sums of the sale and loan amounts were being paid to real estate agents.

In reality, police say Green paid the property sellers kickbacks for undisclosed reductions in the sales prices, secretly funded down payments for purchases and paid out other kickbacks unrelated to the real estate transactions.

Additionally, investigators say Greene convinced investors to provide capital for the purchase of homes, but spent the money on himself or to repay or "hush" earlier investors. Investigators say the scheme played out from Oct. 2005 into 2007. Charges were filed on April 16 this year.

The charges are the result of an FBI investigation into Greene's actions.