Ladue Developer Litz Gets 3 Years in Prison in Bank Fraud Case

By on May 14, 2018

From St. Louis Post-Dispatch:  Michael Litz, a Ladue developer who along with former banker Shaun Hayes defrauded a bank to pay off millions of dollars in delinquent real estate loans, was sentenced to 36 months in prison Monday in a U.S. district court.

Litz’s Clayton-based businesses, Bellington Realty and Eighteen Investments, managed more than 1,000 residential and commercial rental properties in the St. Louis region. According to the U.S. attorney’s office, Eighteen Investments was delinquent on more than $100 million in loans at banks throughout the area in 2009.

Litz in January pleaded guilty to a federal charge of misapplying bank funds. He helped co-defendant Hayes, who has also pleaded guilty in the case, in misusing funds of former Sedalia-based Excel Bank by concealing loans from the bank and regulators.

U.S. District Judge Audrey Fleissig also sentenced Litz to five years of supervised release following his prison time and ordered him to pay approximately $5 million in restitution, mostly to the Federal Deposit Insurance Corporation and $60,000 to an unidentified individual.

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