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Local businessman sentenced on fraud charges involving fraudulent use of insurance proceeds

March 6, 2012

St. Louis, MO - The United States Attorney’s Office announced today that Christopher Scott Walters, owner of Walters Holdings LLC, was sentenced on fraud charges involving his misuse of insurance proceeds for fire damage to an apartment complex. Walters was sentenced to five years probation, six months confinement in a community confinement center, followed by 12 months of electronic monitoring. He was also ordered to pay restitution of $236,983.

According to the facts filed with the court, Walters Holdings LLC obtained a commercial loan from Citibank for $7,840,000 for the purchase of an apartment complex known as Ashby Heights, located in St. Louis County. On November 20, 2008, Ashby Heights was damaged by fire, and Walters filed an insurance claim to cover the damage. Because Citibank held the lien on Ashby Heights at the time of the fire, any insurance proceeds had to be retained by Citibank and disbursed as repairs were made to the property. In early 2009, Walters received insurance checks intended to cover the fire damage. Instead of using the insurance proceeds as intended, Walters forged Citibank endorsements on the checks and used the proceeds for paying personal debts and expenses, making mortgage payments and purchasing a 2009 Cadillac Escalade. Citibank did not become aware of the fire until September 2009, well after the insurance checks already had been issued and the proceeds diverted by Walters.

CHRISTOPHER SCOTT WALTERS, of Chesterfield, pled guilty last November to two felony counts of bank fraud, two felony counts of uttering forged securities and one count of unlawful monetary transactions. He appeared today for sentencing before United States District Judge Audrey Fleissig.

This case was investigated by the United States Secret Service. Assistant United States Attorneys Reginald Harris and Richard Finneran handled the case for the U.S. Attorney’s Office.

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