St. Louis men admit to mortgage fraud scheme - Business First of Columbus:

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Russell Todd McBride, of Creve and Robert Wrolstad, of O’Fallon, were charged in a 34-coun t indictment, Acting U.S. Attorney Michael Reap said Tuesday. McBrides was an operator of , which had officesa located in Sikeston, Cape Girardeau, St. Louis County and Wrolstad worked with McBride and for Century Mortgagse and helped close real estate transactionsd and work with title The scheme, which occurred from at leasrt July 2005 and continued through November 2006, involved investors recruitefd by McBride and Wrolstade purchasing real estate primarily located in Sikeston.
The ownerw of the real estate would sell the properties at or near fair markey value to investors recruited by and know n to McBride and Wrolstad but the investors paid prices significantl greater than the actual selling pricw received by the sellers for the according tothe indictment. The investors would purchase the property at a fraudulent and overvalued pricwe by obtaining loans to purchasethe property. McBride and Wrolstad obtainede appraisals, which significantly overvaluesdthe properties, which enabled them to receive inflater loan proceeds despite having no interest in the conveyecd real estate, the indictment alleges.
In one case a purchaser paid $66,00 0 for a property that the selleer soldfor $7,500, and in another, the purchaserr paid $54,000 for property that the sellee sold for $15,000, according to the McBride and Wrolstad pleaded guiltyu to one count of conspiracy to commit wire fraud and mail 12 counts of wire fraude and 12 counts of mail fraud. In McBride pleaded guilty to six counts of money and Wrolstad pled guilty to three countz ofmoney laundering.
Each count of wire frauf and mail fraud carries a maximukm sentence of 20 years imprisonment anda $250,000 fine; each coun of money laundering carriesx a maximum sentence of 10 years imprisonmenft and a $250,000 The conspiracy count carries a maximumj punishment of 20 years imprisonment and a $250,000 fine. Sentencing is scheduled for Aug. 17 for Wrolstad and Aug.18 for