St. Charles area developer pleads guilty to federal bank fraud charges
St. Louis, MO - The United States Attorney’s Office announced today that Gary Vehlewald pled guilty to a bank fraud charge involving the development of Springwell Village in St. Charles, MO.
According to court documents, Vehlewald was a residential developer doing business under the names of Springwell Village Development and Vehlewald Construction, Inc. In 2006, he secured loans from Premier Bank for the purchase of an eleven acre tract of land. The land was to be developed into a housing community known as Springwell Village. In addition Vehlewald entered into a loan agreement with Premier Bank for the construction of eight single family residences. Premier Bank loaned Vehlewald Construction approximately $3.9 million for the construction and land development of Springwell Village. Premier Bank later discovered that Vehlewald used Springwell Village loan disbursements for uses other than that represented in the loan disbursement requests, including for work that had not been completed and for payment to subcontractors and employees who performed work at other Vehlewald Construction projects.
GARY VEHLEWALD, St. Charles, MO, pled guilty to one felony count of bank fraud before United States District Judge Audrey G. Fleissig. Sentencing has been set for May 15, 2012.
Bank fraud carries a maximum penalty of 30 years in prison and/or fines up to $1,000,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Dianna Collins is handling the case for the U.S. Attorney’s Office.