KENOSHA, WI (WTAQ) - A former Kenosha mortgage broker has been sentenced to 14 months in a federal prison for helping run a fraud scheme that netted $14 million.
Paul Zaleski, formerly of Twin Lakes, was one of five people convicted in an operation that ran from 2004 to ’06.
Zaleski, who now lives in Ojai California, recruited people who assumed they were joining an investment group – and they put up the money to buy 50 properties which had fake loan applications and false appraisals.
The properties were in southeast Wisconsin and northern Illinois, and most of the mortgages ended up in foreclosure.
Zaleski pleaded guilty to wire fraud and money laundering. Two co-conspirators each got one year in prison. An investor and a loan processor were each put on three years of probation.