Web Search powered by YAHOO! SEARCH
11.17.2009 3:15 pm

O’Fallon, Mo., man gets prison for mortgage fraud

St. Louis Post-Dispatch
  • Email this
  • Print this

An O’Fallon, Mo., man was sentenced Tuesday to nine years in federal prison for his role in a widespread mortgage fraud scheme, the U.S. Attorney’s office said.

Robert P. Wrolstad, worked the scheme with co-defendant Russell Todd McBride, of Creve Coeur. McBride was sentenced Monday to 11 years, three months in prison.

McBride ran Century Mortgage and Finance Inc. and employed Wrolstad. The company had offices in Sikeston, Cape Girardeau, Mo., St. Louis County and elsewhere.

From 2005 to 2008, the men scammed between $7 million and $20 million from lenders on 341 properties in eastern Missouri, mostly in the Sikeston area, prosecutors said.

The pair recruited investors, who were scammed into paying jacked-up prices for real estate by inflated appraisals, federal prosecutors said. Some buyers paid many multiples of the actual value of the property, they said.

Wrolstad and McBride sometimes fronted the closing costs or down payments to close the deal, prosecutors said, and the scammers then siphoned off the excess .

Each man pleaded guilty to one count of conspiracy to commit wire fraud and mail fraud, 12 counts of wire fraud and 12 counts of mail fraud. McBride pleaded guilty to six counts of money laundering. Wrolstad pleaded guilty to three counts of money laundering.

Prosecutors said McBride has no connection to the area home building company, McBride and Sons.

1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading ... Loading ...
One comment

Comments are closed.

[...] O’Fallon, Mo. man gets prison for mortgage fraud - St. Louis Post-DispatchAn O’Fallon, Mo. man was sentenced to nine years in federal prison Tuesday for his role in a widespread mortgage fraud scheme, the U.S. Attorney’s office said. Robert P. Wrolstad, worked the scheme with co-defendant Russell Todd McBride, of Creve [...]