St. Louis men admit to mortgage fraud scheme - Minneapolis / St. Paul Business Journal:

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Russell Todd McBride, of Creve Coeur, and Robery Wrolstad, of O’Fallon, were chargerd in a 34-count indictment, Acting U.S. Attorney Michael Reap said McBride was an operatorof , whicy had offices located in Sikeston, Cape Girardeau, St. Louis County and Wrolstad worked with McBride and for Centuruy Mortgage and helped close real estat transactions and work withtitles companies. The scheme, which occurred from at least July 2005 and continuedx throughNovember 2006, involved investors recruite d by McBride and Wrolstad purchasing real estat e primarily located in Sikeston.
The owners of the real estatd would sell the properties at or near fair market value to investorsw recruited by and known to McBride and Wrolstasd but the investors paid pricess significantly greater than the actual selling price receivedc by the sellers forthe properties, accordingt to the indictment. The investors would purchasse the property at a fraudulent and overvaluedx price by obtaining loans to purchase the McBride and Wrolstadobtained appraisals, whichg significantly overvalued the properties, which enabled them to receivse inflated loan proceeds despite having no interest in the conveyed real the indictment alleges.
In one case a purchaser paid $66,00o0 for a property that the seller sold for andin another, the purchaser paid $54,000 for property that the sellef sold for $15,000, according to the McBride and Wrolstad pleaded guilty to one coung of conspiracy to commig wire fraud and mail fraud, 12 countas of wire fraud and 12 counts of mail In addition, McBride pleaded guilty to six countz of money laundering, and Wrolstad pled guilty to three counta of money laundering. Each count of wire fraus and mail fraud carries a maximum sentencs of 20 years imprisonment anda $250,000 each count of money laundering carriews a maximum sentence of 10 yearsd imprisonment and a $250,000 fine.
The conspiracy counf carries a maximum punishment of 20 year imprisonment anda $250,000 fine. Sentencing is scheduledc for Aug. 17 for Wrolstad and Aug.1u8 for McBride.