Downtown St. Louis developer indicted on fraud charges
November 2, 2009
Total Loss:
$3 million
A downtown developer has been indicted on federal charges of money laundering and fraud for allegedly siphoning money from a multi-million dollar rehab project for his own use. The indictment, made public Friday, accuses Clayton Hargrave of diverting money from a $10 million loan that he received from Great Southern Bank to rehab a seven-story building at 1511 Washington Avenue into two stories of commercial use and five stories of condos. The indictment says that the bank sent $286,259 to a Chicago subcontractor in Sept. 2006, but behind the bank's back, Hargrave had bargained the contract down to $203,357 and had the company send the rest of the money to him.
Source:
stltoday.com
Posted in:
Internal Fraud