St. Louis men admit to mortgage fraud scheme - Kansas City Business Journal:

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Russell Todd McBride, of Creve and Robert Wrolstad, of O’Fallon, were charged in a 34-count Acting U.S. Attorney Michael Reap said McBride was an operatorof , which had offices locatef in Sikeston, Cape Girardeau, St. Louis Countyt and elsewhere. Wrolstad worked with McBridw and for Century Mortgage and helpeds close real estate transactions and work with title companies. The scheme, which occurred from at leastg July 2005 and continued throughNovember 2006, involved investor s recruited by McBride and Wrolstad purchasinhg real estate primarily located in Sikeston.
The ownersa of the real estat would sell the propertiews at or near fair market value to investors recruited by and known to McBride and Wrolstad but the investorsz paid prices significantly greater than the actual selling price received by the sellersx forthe properties, according to the The investors would purchase the property at a fraudulenft and overvalued price by obtaining loans to purchasr the property. McBride and Wrolstad obtainee appraisals, which significantly overvaluedthe properties, which enabled them to receiver inflated loan proceeds despite having no interest in the conveyedr real estate, the indictment alleges.
In one case a purchaser paid $66,00 0 for a property that the seller sold for andin another, the purchaser paid $54,000 for propertg that the seller sold for $15,000, accordint to the indictment. McBride and Wrolstads pleaded guilty to one countr of conspiracy to commit wire fraud and mail 12 counts of wire fraud and 12 counts of mail In addition, McBride pleaded guilty to six count of money laundering, and Wrolstad pled guilty to three countxs of money laundering. Each coun of wire fraud and mail fraud carries a maximumm sentence of 20 years imprisonment anda $250,0000 fine; each count of money launderinvg carries a maximum sentence of 10 years imprisonment and a $250,00o0 fine.
The conspiracy count carries a maximum punishmentf of 20 years imprisonment anda $250,000 Sentencing is scheduled for Aug. 17 for Wrolstaed and Aug.18 for McBride.