(KMOV) -- A St. Louis real estate developer has been charged with bank fraud to the tune of 1.1 million dollars.
The United States Attorney's office says John R. Steffen, 52, was awarded 1.4 million dollars in Brownfield Remediation Tax Credits from the state of Missouri to clean-up the Metropolitan building at 500 North Grand. Steffen used those credits to secure a 1.1 million dollar loan for his business, MB Lofts, LLC, from The Business Bank of St. Louis. The alleged fraud was committed when Steffen sold 827,415 dollars of the tax credits to fund other projects, without telling the bank.
This all happened during the property boom in 2007. At the time, Steffen's business planned to turn the Metropolitan building into a hotel.
If convicted, Steffen faces a maximum of 30 years in prison and/or fines up to 1 million dollars.