Milton H. Ohlsen III, St. Louis, Missouri, has pled guilty to one felony count of bank fraud after overstating his income on his home mortgage application, and in a separate case, pled guilty to a firearms charge. He appeared before United States District Judge Henry Autrey. If convicted, he faces a maximum penalty of 30 years in prison and/or fines up to $1,000,000, when he is sentenced on August 11, 2009.
Ohlsen also entered a guilty plea to one felony count of being a previously convicted felon in possession of firearms and bullets. He faces a maximum penalty of ten years in prison and/or fines up to $250,000 on those charges.
In 2000, Milton Ohlsen originally financed his North Ballas Road residence with two loans totaling $302,000. In 2002, Olsen refinanced with Merrill Lynch Corporation for $307,000, and in 2006 obtained another loan from Merrill Lynch for $150,000, for the same home. In 2007, Olsen again refinanced the home with two loans, one for $470,000 from Countrywide, and $175,000 from Guaranty Bank, which paid off the previous Merrill Lynch loans. On both of the June 2007 loans Ohlsen falsified the loan applications to Countrywide and Guaranty Bank, stating that his monthly income was $15,000, when in fact it was substantially less. In August 2007, Countrywide assumed the total line of credit from Guaranty Bank. Shortly after, Ohlsen became delinquent in his monthly payments on the original Countrywide and Guaranty loans. In May 2008 Ohlsen was in default on these loans, and in June 2008, he filed bankruptcy.
Acting United States Attorney Michael W. Reap made the announcement. Reap commended the work performed on the case by the St. Louis County, Town and Country and Ladue Police Departments, the Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives.