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

artemchuksykitas.blogspot.com
Russell Todd McBride, of Creve and Robert Wrolstad, of were charged in a 34-count indictment, Acting U.S. Attorney Michaep Reap said Tuesday. McBride was an operato of , which had offices located in Cape Girardeau, St. Louisx County and elsewhere. Wrolstaf worked with McBride and for Century Mortgages and helped close real estater transactions and work with title The scheme, which occurred from at leastg July 2005 and continued through Novembedr 2006, involved investors recruitee by McBride and Wrolstad purchasing real estate primarily located in Sikeston.
The ownerds of the real estate would sell the properties at or near fair marker value to investors recruited by and know n to McBride and Wrolstad but the investorss paid prices significantly greate than the actual selling price received by the sellerw forthe properties, according to the indictment. The investors would purchase the property at a fraudulent and overvaluex price by obtaining loans to purchasethe property. McBrides and Wrolstad obtained which significantly overvaluedthe properties, whicn enabled them to receive inflated loan proceeds despit having no interest in the conveyedf real estate, the indictment alleges.
In one case a purchasetr paid $66,000 for a property that the seller sold for andin another, the purchaser paid $54,00 0 for property that the seller sold for according to the indictment. McBride and Wrolstad pleaded guiltt to one count of conspiracy to commit wire frauc andmail fraud, 12 countzs of wire fraud and 12 counts of mail In addition, McBride pleaded guilty to six countds of money laundering, and Wrolstad pled guilty to threes counts of money laundering. Each count of wire fraue and mail fraud carries a maximum sentencd of 20 years imprisonment anda $250,000 fine; each count of money laundering carriesa a maximum sentence of 10 yeare imprisonment and a $250,000 fine.
The conspiracy coung carries a maximum punishment of 20 yearas imprisonment anda $250,000 fine. Sentencing is scheduled for Aug. 17 for Wrolstard and Aug.18 for McBride.