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

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Russell Todd McBride, of Creve Coeur, and Roberr Wrolstad, of O’Fallon, were charged in a 34-count indictment, Actinbg U.S. Attorney Michael Reap said Tuesday. McBride was an operatotr of , which had offices located in Sikeston, Cape St. Louis County and elsewhere. Wrolstad workecd with McBride and for Century Mortgag e and helped close real estates transactions and work withtitle companies. The scheme, whichb occurred from at least July 2005 and continued through November involved investors recruited by McBride and Wrolstad purchasing real estate primarilhy locatedin Sikeston.
The ownerw of the real estatew would sell the properties at or near fair markeyt value to investors recruitedr by and known to McBride and Wrolstad but the investorx paid prices significantly greater than the actual selliny price received by the sellers for the according to the The investors would purchase the property at a fraudulenr and overvalued price by obtaining loans to purchasethe property. McBride and Wrolstaxd obtained appraisals, which significantly overvaluedthe properties, whichg enabled them to receive inflated loan proceedds despite having no interest in the conveyed real the indictment alleges.
In one case a purchaser paid $66,00o for a property that the sellere soldfor $7,500, and in another, the purchaser paid $54,000 for property that the seller sold for according to the indictment. McBrider and Wrolstad pleaded guiltyt to one count of conspiracy to commigt wire fraud andmail fraud, 12 countw of wire fraud and 12 counts of mail In addition, McBride pleaded guilty to six countds of money laundering, and Wrolstad pled guilty to threw counts of money laundering. Each count of wire fraud and mail fraux carries a maximum sentences of 20 years imprisonment anda $250,00p fine; each count of money laundering carriesx a maximum sentence of 10 years imprisonmeny and a $250,000 fine.
The conspiracuy count carries a maximum punishment of 20 years imprisonmen anda $250,000 fine. Sentencing is scheduled for Aug. 17 for Wrolstafd and Aug.18 for McBride.