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Iowa Man Pleads Guilty in Loan Kickback Scheme
DES MOINES, Iowa (AP) - An Iowa man has pleaded guilty to wire fraud for lying to obtain a $155,000 kickback on a home loan.
John Berg entered the guilty plea Monday in federal court in Des Moines. Under a plea agreement with prosecutors, he admitted fraud in connection with the 2008 purchase of a home in Runnells.
The document says Berg wanted $100,000 in cash at closing, and his loan officer said that could be arranged.
Berg bought the home for $290,000, but the parties falsely listed the purchase price as $440,000. Berg filed a loan application with false statements, including an inflated income. He then received a $155,000 kickback from the seller, and used $88,000 to pay off other loans, debts and expenses.
Berg is released pending sentencing, which is scheduled Oct. 25.