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'Ringleader' of vast real estate fraud scheme sentenced to 3 years in prison

At the federal courthouse in St. Paul, Matthew Onofrio was sentenced to three years in prison and ordered to pay $5.39 million in restitution to a Bloomington, Minn., bank, with his term starting on Feb. 10.
Prosecutors say the scheme involved $420 million in fraudulently obtained bank loans across 68 commercial real estate deals, with Onofrio indicted on Nov. 17, 2022, and pleading guilty on July 10.
Prosecutors say Onofrio promoted himself online as a real estate 'savant' to recruit investors, used assignable purchase agreements at higher prices to earn fees, and helped fabricate financial proofs for banks.
Rochester properties tied to the case were liquidated under a receiver, including Massey and Blakely buildings bought for $7.7 million and sold for $4.5 million in 2024.
Federal prosecutors had sought a six-year term while noting similar cases average five years; about 30 letters asked for mercy, and the U.S. Attorney's office said the judge wanted to send a message.

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'Ringleader' of vast real estate fraud scheme sentenced to 3 years in prison

ROCHESTER — Matthew Onofrio, the former Mayo Clinic nurse anesthetist turned commercial real estate investment “guru,” was sentenced to three years in prison this week and to ordered to pay $5.39 million in restitution to a Bloomington, Minn., bank In handing down her sentence, Judge Susan Richard Nelson described Onofrio as the “ringleader and architect of a vast bank fraud.” She said wanted to send a message to other would-be fraudsters that t…

5 days ago·Cherokee County, United States

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