ST. LOUIS (KMOV) – A man was indicted by a federal grand jury Wednesday in St. Louis on four felony counts of wire fraud and one felony count of mail fraud.
Jay Dunlap, 37, is accused of defrauding his ex-partners and banks and other lenders in an equity-stripping scheme.
According to the indictment, Dunlap convinced a partner to put up more than $270,000 to acquire and rehabilitate a property in St. Louis city. After titling the property in the name LLC, which was controlled by his two friends, he told them to borrow money against the equity in the home and use the proceeds to pay him and his friends’ expenses.
If convicted, each count carries a maximum penalty of 20 years in prison and or fines up to $250,000.