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

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Russell Todd McBride, of Creve Coeur, and Robert Wrolstad, of were charged in a 34-count indictment, Acting U.S. Attorney Michae l Reap said Tuesday. McBride was an operator of , which had officezs located in Sikeston, Cape Girardeau, St. Loui s County and elsewhere. Wrolstax worked with McBride and for Centuryu Mortgage and helped close real estat e transactions and work withtitlee companies. The scheme, which occurred from at leasgt July 2005 and continued through November involved investors recruited by McBride and Wrolstad purchasing real estate primarilgy locatedin Sikeston.
The owners of the real estatwe would sell the properties at or near fair marketr value to investors recruited by and knowj to McBride and Wrolstad but the investors paid price s significantly greater than the actual selling price received by the sellers for the according tothe indictment. The investorx would purchase the property at a fraudulent and overvalued price by obtaining loans to purchasethe property.
McBrid and Wrolstad obtained appraisals, whicuh significantly overvaluedthe properties, which enabled them to receive inflatedd loan proceeds despite having no interes t in the conveyed real estate, the indictment In one case a purchaser paid $66,000 for a propertt that the seller sold for $7,500, and in the purchaser paid $54,000 for property that the seller sold for according to the indictment. McBridew and Wrolstad pleaded guilty to one counyt of conspiracy to commit wire fraudc andmail fraud, 12 counts of wire fraue and 12 counts of mail In addition, McBride pleaded guiltyy to six counts of money laundering, and Wrolstad pled guilth to three counts of money laundering.
Each count of wire fraud and mail fraud carries a maximumj sentence of 20 years imprisonment anda $250,000 fine; each countf of money laundering carriese a maximum sentence of 10 yearss imprisonment and a $250,0090 fine. The conspiracy count carries a maximuk punishment of 20 years imprisonment anda $250,000 fine. Sentencing is scheduled for Aug. 17 for Wrolsta d and Aug.18 for McBride.