David Saks: Controller for The Mortgage Store Pleads Guilty to Bank Fraud

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Controller for The Mortgage Store Pleads Guilty to Bank Fraud

 

St. Peters Man Pleads Guilty to Bank Fraud

 

U.S. Attorney’s Office December 11, 2014
  • Eastern District of Missouri

 

ST. LOUIS, MO—

Mark Avalos

pled guilty to bank fraud charges relating to his work as the Controller for The Mortgage Store, Inc. (TMS), in 2008.

According to court documents, TMS was a major mortgage brokering business with offices in four states and hundreds of employees.

The main offices were in Westport Plaza and Wentzville.

The businesses were operating at a financial deficit in 2008.

There were not sufficient funds available to fund the disbursements from TMS and, in addition, to meet all of the expenses incurred by TMS.

In order to meet certain expenses and, at the same time, conceal the absence of adequate funds, Avalos and others at TMS caused insufficient funds checks drawn on the checking accounts of both TMS and Title America to be deposited between those accounts in such a way that the “float” concealed the true balances of each account.

The accounts were at Enterprise Bank in Clayton and at the First Bank of the Lake in Osage Beach, Missouri.

The TMS account had a negative balance of approximately $850,000 in June, 2008, when the banks stopped accepting the floated checks.

TMS went out of business shortly thereafter.

Avalos, 49, St. Peters, Missouri, pled guilty to one felony count of bank fraud before United States District Judge Henry E. Autrey.

Sentencing has been set for March 16, 2015.

He now faces a maximum penalty of 30 years in prison and/or fines up to $1 million. (Although court documents show that the parties are requesting a lesser sentence due, in part, to Avalos’ cooperation in the investigation.)

In determining the actual sentence, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.

Jason Rauschelbach

and

John York,

the owners of TMS, pled guilty earlier this year to charges stemming from the TMS business.

Rauschelbach is presently serving a 24 month prison sentence following that guilty plea, and York is scheduled to be sentenced on February 2, 2015.

This case was investigated by the FBI, IRS Criminal Investigation and the Inspector General Offices of HUD and the Department of Labor as well as the Postal Inspection Service. Assistant United States Attorney James E. Crowe, Jr., is handling the case for the U.S. Attorney’s Office.

 

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Comment balloon 10 commentsDavid Saks • December 12 2014 07:55AM

Comments

Good insight on bank fraud, David Saks with Education and Training TN.

Posted by Will Nesbitt, Nesbitt Realty is a family-run brokerage. (Nesbitt Realty at Condo Alexandria) about 5 years ago

Thank the DoJ, IRS, Postal Inspector, OIG HUD, Department of Labor, the U.S. Attorney's Office, the Judge and FBI, too, Will.

Nice to hear from you.

Posted by David Saks ((retired)) about 5 years ago

Thanks David for keeping us up to date on the criminals.  Really it is positive to hear about catching and bringing these guys to justice.

Posted by Elite Home Sales Team, A Tenacious and Skilled Real Estate Team (Elite Home Sales Team OC) about 5 years ago

Thank you for your support, Elite.  have a fine weekend.

Posted by David Saks ((retired)) about 5 years ago

David Saks  Fraud is a horrid crime I myself was a victim  I am glad he was caught

Posted by Hannah Williams, Expertise NE Philadelphia & Bucks 215-953-8818 (Re/Max Eastern inc.) about 5 years ago

It really is when it's carried out by a trusted real estate lending professional, Hannah, as so many hundreds of real estate professionals have turned out to be ruthless, remorseless, greed-driven swindlers over the last few years.

Posted by David Saks ((retired)) about 5 years ago

David Saks, This one doesn't read quite like the typical bank fraud deal if there is such a thing.

Posted by Sam Miller, Knox County Ohio Real Estate Specialist (RE/MAX Stars Realty) about 5 years ago

It's the typical "cooking the books" kind of fraud, Sam.

Posted by David Saks ((retired)) about 5 years ago

Bank fraud is despicable. So glad that they were able to incarcerate him.

Posted by Sun City Grand Homes Surprise AZ Real Estate Leolinda Bowers Designated Broker Leolinda Realty, Sun City Grand in Surprise Arizona (Leolinda Realty) about 5 years ago

It is, Leolinda, and very common in the real estate business. Thanks.

Posted by David Saks ((retired)) about 5 years ago

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