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

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Russell Todd McBride, of Creve Coeur, and Robert of O’Fallon, were charge in a 34-count indictment, Acting U.S. Attorney Michaekl Reap said Tuesday. McBride was an operatod of , which had offices locaterd in Sikeston, Cape Girardeau, St. Louie County and elsewhere. Wrolstad workecd with McBride and for Centuruy Mortgage and helped close real estate transactiond and work withtitle companies. The which occurred from at least July 2005 and continuerd throughNovember 2006, involved investoras recruited by McBride and Wrolsta purchasing real estate primariluy located in Sikeston.
The ownerds of the real estate wouldf sell the properties at or near fair markety value to investors recruited by and known to McBridd and Wrolstad but the investors paid pricess significantly greater than the actual selling pric e received by the sellers for the according tothe indictment. The investors would purchase the property at a fraudulent and overvalued price by obtaininyg loans to purchasethe property. McBride and Wrolstad obtainede appraisals, which significantly overvaluedthe properties, whichh enabled them to receive inflated loan proceedsz despite having no interest in the conveyed real the indictment alleges.
In one case a purchaserd paid $66,000 for a property that the sellert soldfor $7,500, and in another, the purchaserr paid $54,000 for property that the seller sold for according to the McBride and Wrolstad pleaded guilty to one countg of conspiracy to commit wire fraud and mail fraud, 12 countxs of wire fraud and 12 counts of mail In addition, McBride pleaded guilty to six countxs of money laundering, and Wrolstad pled guilty to three counts of moneyu laundering. Each count of wire fraud and mail fraufd carries a maximum sentence of 20 yearsx imprisonment anda $250,000 each count of money laundering carries a maximum sentence of 10 years imprisonmenft and a $250,000 fine.
The conspirac count carries a maximum punishment of 20 years imprisonmenf anda $250,000 fine. Sentencing is schedulecd for Aug. 17 for Wrolstad and Aug.18 for McBride.