Savage Woman Joins Golden Valley Man in Prison for Mortgage Fraud

On Aug. 31, Barbara Lynnae Puro of Savage was sentenced to five years in prison for her role in a multi-million dollar mortgage fraud scheme, according to a statement released by the United States Attorney’s Office.

Puro joined Golden Valley resident Zack Zafer Dyab, for his role as co-conspirator. Dyab pleaded guilty to one count of conspiracy to commit wire fraud and one count of money laundering in connection with the crime.

According to the press release from the United States Attorney’s Office:

Puro conspired with others to obtain loan proceeds by making false representations to and withholding material information from lenders during the loan application process.

As part of this scheme, Puro arranged for homeowners to sell their properties to straw buyers at inflated prices. In each instance, she funneled co-conspirators the difference between the amount paid to the seller and the inflated sale price. In addition to representing those sellers, Puro often represented straw purchasers. On their behalf, she routinely produced fraudulent documentation for lenders and title companies.

Puro and her co-conspirators convinced straw buyers to purchase approximately 22 residential properties in Minnesota, resulting in fraudulent loans in excess of $10 million and losses of approximately $5.3 million.

This case was the result of an investigation by the Federal Bureau of Investigation, the Minnetonka Police Department, and the Internal Revenue Service-Criminal Investigation Division. It was prosecuted by Assistant U.S. Attorney Christian S. Wilton.