11/10/2008

Associated Press

The U.S. attorney's office announces federal indictments against two suburban St. Louis men accused of committing mortgage fraud in southeast Missouri.

U.S. Attorney Catherine Hanaway said Monday that 46-year-old Russell McBride of Creve Coeur and 59-year-old Robert Wrolstad of O'Fallon are charged in a 34-count indictment for their alleged roles.

The two men are accused of recruiting investors to buy Sikeston properties for higher than the actual selling price. They allegedly got appraisals overvaluing the properties and received inflated loan proceeds while working for Century Mortgage and Finance Inc.

Hanaway said the scheme resulted in at least a half million in losses.

A lawyer for one of the men did not immediately return a call seeking comment. An attorney for the other man could not immediately be reached.