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2 Sentenced for Mortgage Fraud Show Little Remorse

Stacy Harrold, 43, was sentenced to 75 months in prison and ordered to pay $1,000 to a California man whose identity they stole as part of the scheme and pay a fine of $10,000. David Schoenhofen, 43, was sentenced to 54 months in prison and was to forfeit a rental home he owned in Edina to the county attorney's office. The house has a value of about $250,000. The final member of the group who was found guilty of criminal racketing in the mortgage fraud case, Eric Bernard, will be sentenced Nov. 1, 2011. Prosecutors are seeking a 150 month prison sentence.

The two of the three convicted defendants in the Enzo Mortgage Group fraud case have shown little real remorse.


Nonetheless, Hennepin County District Court Judge George McGunnigle has sentenced them to substantial prison terms. McGunnigle also approved an unusual request from the Hennepin County Attorney's Office that one of them forfeit property.

Bernard and  Schoenhofen would identify properties to buy. Then Harrold, through her work as a loan officer at Enzo Mortgage, would create fraudulent documents and set up the sales to Bernard or to two California residents whose identities they had stolen.

At the closing, the three would share in fees, kickbacks of loan proceeds and payments to Bernard's Cire Builders for work that was never done on the houses. Since there were no real buyers of the properties, most of them went into foreclosure, causing losses for the lenders.

While Harrold told the court she was "extremely sorry for any involvement I had in this situation," she also appeared not to grasp the impact her actions, and those of others involved in mortgage crimes around the country, had on hard-working Americans.

She told McGunnigle that she was concerned about the fine because "I haven't been able to be employed because of this and because of the mortgage downfall," which was making it difficult for her and her husband to sell or refinance their house.

For his part, Schoenhofen's sentencing included rolling in the crimes that resulted from a search of his Prior Lake house.

In a safe, investigators found 70 grams of marijuana, $3,400 in cash and a handgun. Schoenhofen said the gun was for protection when he collected rents from some of his rental properties and many tenants paid in cash.

Schoenhofen, too, showed only a small amount of remorse. When his attorney described Schoenhofen's actions as "poor judgment," McGunnigle would have none of it.

"This was not an accident," McGunnigle said. "This was not an error in judgment. This was a serious crime."

Courtesy Mortgage Fraud Blog

David Saks

Time&Temp Memphis

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Comment balloon 6 commentsDavid Saks • October 19 2011 01:19AM


Just over 6 years of living in government paid houstng ... interesting

Posted by Brian Schulte, SFR, Sierra Vista, AZ (Allison James Estates & Homes) over 8 years ago

Crime doesn't pay. I will have to agree with the Judge, no error in judgment here and definitely no accident,

Posted by Captain Wayne - Rowlett Real Estate School, Rowlett Real Estate School / Owner and Instructor (REcampus Fully Accredited Florida ONLINE & Classroom Training in Destin, Pensacola Florida) over 8 years ago

You wouldn't want her to be homeless, would you, Brian ?

Posted by David Saks ((retired)) over 8 years ago

It pays the courts, Wayne, and sometimes the victims. By the way, I'd probably enjoy teaching at your school. Real estate education is something I live for, and will for the rest of my life. I'd enjoy some time in an A-4 or 172, too, if it would stop raining, and if AV gas was 55 cents a gallon.

Posted by David Saks ((retired)) over 8 years ago
Dave is a true scam artist. He rented my family and I a home knowing full well that this home was going into foreclosure and yup 8 months later we get a call from the bank. Banker said this home was probably paid for by his ripping other people off. The best part is when I confronted this loser about the whole deal he says it's not in foreclosure , I just gave it back to the bank. The banker said are you kidding me, this is a full blown foreclosure and he used the money we paid him for lord knows what. Before he was put in prison he was renting a place next to us that you could not believe. It was hardly a cabin with rotting siding and plastic over the roofs. This clown needed about 20 years in the can. He will be back scamming people in no time. But this time he will do it as a convicted felon. Nice ring huh Dave ? Convicted felon. These idiots still think they did nothing wrong.
Posted by Tim s over 8 years ago

You should get some satisfaction from what the justice system has done, Tim, to stop them.

Posted by David Saks ((retired)) over 8 years ago

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