January 13, 2014
Missouri based Excel Bank failed in 2012 costing the FDIC $126 million.
And since the bank received TARP funds, “having the TARP investigators available to look into the bank fraud cases helped lead to the indictments,” says U.S. Attorney Richard Callahan.
Writes St. Louis Today;
William Glasgow, 72, of Town & Country, was indicted by a federal grand jury on two felony counts of bank fraud. Glasgow owned dozens of rental properties through his business, Glasgow Realty, and had loans on rental properties that he received by falsifying information, according to the indictment.
Glasgow had two loans for rental properties with Excel Bank for nearly $2 million and falsely represented that the properties were rented when they were actually vacant, according to the indictment.
Separately, James Crews, 56, of Wentzville, and Michael Hilbert, 62, of St. Charles, allegedly defrauded Excel Bank by submitting numerous draw requests through various entities. set aside for improvements to rental properties in the St. Louis area. Both Crews and Hilbert were indicted on two felony bank fraud counts each.
In one $2.1 million loan Crews and Hilbert had with Excel Bank, more than $175,000 was available in escrow to rehab 18 properties, according to court documents. Crews and Hilbert allegedly submitted construction draw requests on the properties to install new bedrooms and water heaters, but never did the work, according to the indictment. “After the loans … closed, defendants made numerous false and fraudulent representations to Excel Bank to draw down on the rehab or fix funds escrowed by Excel,” the indictment states.