Archives For Missouri

Gary Bryan Penrod was acquitted by a Federal Jury on twenty-two counts of mail fraud and wire fraud after trial in the Western District of Missouri Federal Court.  This acquittal is as to all charges brought against Penrod.

Albert William Roberts III, 68, Lee’s Summit, Missouri, was sentenced to four years in federal prison without parole in connection with his role in a $3.7 million mortgage fraud scheme. U.S. District Judge Brian C. Wimes also ordered Roberts to pay $1,992,221 in restitution.

On May 13, 2016, Roberts was found guilty at trial of four counts of wire fraud. Roberts, a retired Kansas City, Missouri., school teacher, obtained a total of $3,758,420 from mortgage lenders and title companies from 2002 to 2007 for the purchase of a dozen properties from Penrod Homes, Inc. – three properties in Lee’s Summit, Missouri, six properties in Peculiar, Missouri, and three properties in Greenwood, Missouri. Most of the homes were priced in the upper $100,000 or lower $200,000 range; the most expensive was a home on about two acres for $1.3 million.

Although Roberts was found guilty of wire fraud specifically in connection with two of those transactions, evidence introduced during the trial indicated that Roberts’ fraud extended to 10 additional properties. Roberts obtained all 12 mortgage loans by material false and fraudulent representations and omissions of facts. He structured the purchases of the homes in such a way that he received $807,203 in kickbacks that were not disclosed to the lenders.

The sentenced was announced by Tammy Dickinson, United States Attorney for the Western District of Missouri. The case was prosecuted by Senior Litigation Consultant Gregg R. Coonrod and Assistant U.S. Attorney Kathleen Mahoney. It was investigated by the FBI.

UPDATE:  Mr. Penrod was acquitted of all charges by a federal jury in March 2017.  http://www.mortgagefraudblog.com/31172-2/

 

Gary Bryan Penrod, 52, home builder, Greenwood, Missouri,  was charged in a 22-count indictment returned by a federal grand jury in Kansas City, Missouri,  in connection with a multi-million dollar mortgage fraud scheme.

The federal indictment alleges that Penrod, doing business as Penrod Homes, Inc., engaged in a scheme to defraud mortgage lenders from May 2005 to June 2007. Penrod and others allegedly recruited buyers to apply for mortgage loans to purchase dozens of homes in Greenwood, Missouri and Peculiar, Missouri. Continue Reading…

Bruce Swisshelm, 68, Battlefield, Missouri, and his son, Bruce Swisshelm II, 43, Springfield, Missouri pleaded guilty in two separate but related cases, to their roles in a more than $5.5 million bank fraud scheme.  Swisshelm pleaded guilty to bank fraud and money laundering. Swisshelm II pleaded guilty to misprision of a felony. Continue Reading…

Joseph Brogan, St. Louis, Missouri, was sentenced to 14 months in prison and ordered to pay more than $350,000 in restitution after pleading guilty to multiple fraud charges related to a scheme involving applications for home loans.

According to court documents, Brogan was employed as a loan officer for USA Mortgage, Inc. where he handled both conventional mortgages and FHA loans.  Michael Wallis owned and operated a company known as Missouri Builders and Home Remodeling (Missouri Builders), which performed interior construction and remodeling work on houses.  Continue Reading…

Bryan Binkholder, 43, Wentzville, Missouri, was sentenced to 108 months in prison on multiple fraud charges involving his financial planning and investment strategy businesses. In addition to the prison sentence, he was also ordered to pay $3,655,980 restitution to the victims.

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Mark Avalos, 50, St. Peters, Missouri, was sentenced to five years probation and ordered to pay $497,000 in restitution after pleading guilty to bank fraud charges relating to his work as the controller for The Mortgage Store (TMS) in 2008. In imposing sentence, United States District Judge Henry E. Autrey noted Avalos’s cooperation in the criminal investigation into the collapse of TMS in 2008.

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John York, Wentzville, Missouri, was sentenced to 21 months in federal prison on charges of conspiracy to defraud the United States through his business, The Mortgage Store, Inc., in 2008.

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Tri-State Holdings-32, LLC, and principals Brandon Miller and Tony Caldwell, are the subject of a lawsuit for allegedly running a scam house-flipping business. The suit alleges that they quickly flipped homes and sought new buyers to purchase homes already sold to other consumers who had stopped paying. Existing homeowners often found that deeds had not been recorded in their name, offering no protection from the house being resold out from under them.

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Teresa Jean Whitten, 41, Claycomo, Missouri, who operated a real estate business, was sentenced in for her role in a $5 million mortgage fraud scheme wherein she claimed to have a program through which people could purchase houses without putting money down and could qualify and obtain mortgage loans for which they would not otherwise qualify.

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