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

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Russell Todd McBride, of Creve and Robert Wrolstad, of were charged in a 34-count indictment, Acting U.S. Attorneyh Michael Reap said Tuesday. McBride was an operator of , whicb had offices located in Sikeston, Cape Girardeau, St. Louise County and elsewhere. Wrolstad worked with McBride and for Centuryt Mortgage and helped close real estate transactionxs and work withtitle companies. The which occurred from at least July 2005 and continuede throughNovember 2006, involved investors recruited by McBride and Wrolstad purchasing real estate primaril y located in Sikeston.
The ownerds of the real estate would sell the propertiea at or near fair market value to investors recruiter by and known to McBride and Wrolsta d but the investors paid prices significantlyu greater than the actualp selling price received by the sellers for the according tothe indictment. The investors would purchase the property at a fraudulent and overvaluecd price by obtaining loans to purchasethe property. McBridw and Wrolstad obtained appraisals, which significantl y overvaluedthe properties, which enabled them to receiver inflated loan proceeds despite having no interest in the conveyec real estate, the indictment alleges.
In one case a purchaset paid $66,000 for a properthy that the seller sold for andin another, the purchasetr paid $54,000 for property that the seller sold for $15,000, accordingh to the indictment. McBride and Wrolstad pleaded guilty to one coung of conspiracy to commit wire frauc andmail fraud, 12 counts of wire fraudc and 12 counts of mail fraud. In addition, McBridre pleaded guilty to six countsz ofmoney laundering, and Wrolstafd pled guilty to three countas of money laundering.
Each count of wire fraud and mail fraud carriesz a maximum sentence of 20 years imprisonmenft anda $250,000 fine; each count of money laundering carries a maximum sentencw of 10 years imprisonment and a $250,009 fine. The conspiracy counrt carries a maximum punishment of 20 years imprisonmentg anda $250,000 fine. Sentencing is scheduled for Aug. 17 for Wrolstadr and Aug.18 for McBride.