Local Builder Heads to Party Cove: Leaves Investors in His Wake
St. Louis, MO - Paul Creager, 39, of St Louis County, Missouri was sentenced to 60 months imprisonment for defrauding two investors in his failed construction business during 2016. Creager pleaded guilty to two counts of wire fraud on December 21, 2017 and appeared before Chief Judge Rodney W. Sippel in St. Louis today for sentencing.
According to court records, Creager solicited $724,000 from two investors in exchange for equity interests in his construction firm. Creager admitted that during his negotiations with the victims, he presented false financial records which omitted a massive debt owed by his company to a hard money lender which lender possessed a secured interest in virtually all of Creager’s business and personal assets. Soon after receiving victims’ investments, Creager’s business was not able to meet its financial obligations and stopped operating. By mid-2017, Creager’s primary lender foreclosed on virtually all of his assets rendering the investors’ equity stakes in his business worthless. While Creager’s business was failing and his subcontractors and vendors went unpaid, Creager maintained a luxurious lifestyle which included homes in Wildwood and the Lake of the Ozarks as well as a host of vehicles including a Bentley automobile and a 52-foot yacht.
"When you invest in a business, you are entitled to an honest representation of the financial health of the business, and to know how your money will be spent," said Special Agent in Charge Richard Quinn of the FBI St. Louis Division. "Paul Creager knowingly defrauded his investors so he could use their money to live a lavish lifestyle."
In addition to the term of imprisonment, Creager will serve three years of supervised release after release from imprisonment. The Court also ordered Creager to repay the victims $724,024.14 pursuant to the Mandatory Victims Restitution Act. The U.S. Attorney’s office has seized numerous items of Creager’s personal property and will seek to liquidate the seized assets to help pay restitution to the victims.
Creager faces a second fraud Indictment which was filed in 2018 alleging fraud in the solicitation of another investor of more than $2,000,000 as well as fraud upon a title agency in connection with the closing of one of his properties. Creager has pleaded not guilty to those charges which have yet to be resolved.
William Glaser, a former financial advisor and an associate of Creager, is accused in a third case of wire fraud for defrauding his clients in the course of raising more than $1,000,000 in capital for Creager’s business. Glaser is not implicated in either of the criminal cases against Creager nor is Creager implicated in the criminal case against Glaser. Glaser has pleaded not guilty to the criminal charges against him.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The St. Louis division of the FBI investigated this case. Tom Albus handled the case for the U.S. Attorney’s office.