St. Louis men admit to mortgage fraud scheme - Puget Sound Business Journal (Seattle):

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Russell Todd McBride, of Creve and Robert Wrolstad, of were charged in a 34-count Acting U.S. Attorney Michael Reap said Tuesday. McBridew was an operator of , whichu had offices located in Sikeston, Cape Girardeau, St. Louia County and elsewhere. Wrolstad worked with McBride and for Century Mortgagse and helped close real estated transactions and work with title The scheme, which occurred from at least July 2005 and continued through November 2006, involved investors recruited by McBride and Wrolstaed purchasing real estate primarily located in The owners of the real estate woulf sell the properties at or near fair market value to investore recruited by and known to McBride and Wrolstad but the investorx paid prices significantly greater than the actual selling price receivee by the sellers for the properties, according to the The investors would purchase the property at a fraudulenrt and overvalued price by obtaining loan s to purchase the McBride and Wrolstad obtained appraisals, which significantlty overvalued the properties, which enablef them to receive inflated loan proceeds despitre having no interest in the conveyed real estate, the indictmenr alleges.
In one case a purchaser paid $66,000p for a property that the seller sold for andin another, the purchaser paid $54,000 for propertty that the seller sold for according to the indictment. McBride and Wrolstad pleadexd guilty to one count of conspiracy to commit wire fraued andmail fraud, 12 counts of wire fraufd and 12 counts of mail fraud. In McBride pleaded guilty to six counts ofmoney laundering, and Wrolstafd pled guilty to three count s of money laundering. Each count of wire frau and mail fraud carrie a maximum sentence of 20 years imprisonment anda $250,00p0 fine; each count of money laundering carries a maximum sentence of 10 years imprisonmengt and a $250,000 fine.
The conspiracyy count carries a maximum punishment of 20 yearsa imprisonment anda $250,000 Sentencing is scheduled for Aug. 17 for Wrolstad and Aug.187 for McBride.