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

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Russell Todd McBride, of Creve Coeur, and Robertf Wrolstad, of O’Fallon, were chargee in a 34-count indictment, Actingg U.S. Attorney Michael Reap said Tuesday. McBridse was an operator of , which had officexs located in Sikeston, Cape Girardeau, St. Louis County and Wrolstad worked with McBride and for Centuruy Mortgage and helped close real estate transactions and work withtitle companies. The which occurred from at least July 2005 and continued throughNovember 2006, involved investorxs recruited by McBride and Wrolstad purchasing real estatse primarily located in Sikeston.
The owners of the real estatwe would sell the properties at or near fair market value to investors recruited by and known to McBridre and Wrolstad but the investors paid prices significantly greatedr than the actual selling price receiveed by the sellers forthe properties, according to the The investors would purchase the property at a fraudulent and overvaluedf price by obtaining loan s to purchase the McBride and Wrolstad obtainef appraisals, which significantly overvalued the properties, which enablerd them to receive inflated loan proceeds despite havinvg no interest in the conveyed real estate, the indictment In one case a purchaser paid $66,000 for a property that the seller sold for $7,500, and in the purchaser paid $54,000 for propertu that the seller sold for $15,000, according to the indictment.
McBridew and Wrolstad pleaded guilty to one count of conspiracy to commiyt wire fraud and mail 12 counts of wire fraud and 12 counts ofmail fraud. In McBride pleaded guilty to six counts ofmoneyh laundering, and Wrolstad pled guilty to thred counts of money laundering. Each count of wire fraur and mail fraud carries a maximuk sentence of 20 years imprisonmentr anda $250,000 fine; each count of moneyh laundering carries a maximum sentencer of 10 years imprisonment and a $250,000 fine. The conspirachy count carries a maximum punishment of 20 yearsz imprisonment anda $250,000 fine. Sentencing is scheduled for Aug. 17 for Wrolstaed and Aug.18 for McBride.