In the following press release Jeffrey B. Jensen Acting United States Attorney for the Eastern District of Missouri announced that a father and son were indicted on multiple charges involving a broad-ranging bank fraud and money laundering scheme that covered nearly three years, affected five local banks and involved commercial loans of nearly five million dollars.

According to the indictment, the Rickerts were in the real estate develop business under the name Real Estate Management Services, LLC and sought to develop five residences in Ladue and other high-end suburbs. In order to obtain financing for these developments, the Rickerts are alleged to have submitted phony income tax returns, sales contracts and financial statements.

Gary Rickert, Sr., 64, and Brian Rickert, 29 of Creve Coeur, have been indicted by a federal grand jury on five felony counts of bank fraud, three felony counts of money laundering and a forfeiture count involving personal and real property financed by the alleged scheme.

If convicted, the Rickerts face up to thirty years in prison and a one million dollar fine on each bank fraud count and up to ten years in prison and a $250,000 fine on each money laundering count. In the forfeiture allegation, the government seeks two of the residential properties that remain in the name of the Rickerts’ business, a vehicle and a diamond ring purchased with proceeds from the fraud. In all, at least $4.9 million dollars was lent to the Rickerts for the development of the five properties.

“Multi-million dollar bank fraud cases eventually affect all of us, and deserve close attention from federal law enforcement,” said Acting U.S. Attorney Jeffrey B. Jensen.

Jensen commended the work of the United States Secret Service, Internal Revenue Service Criminal Investigation; and Assistant United States Attorney Tom Albus, who is handling the case for the U.S. Attorney’s Office.

The charges set forth in an indictment are merely accusations, and each defendant is presumed innocent until and unless proven guilty.

Update on Wednesday, November 4, 2009 at 3:08PM by The Editor - Ian Shuter - ACFE, DMS

A father and son real estate development team admitted in federal court today to a bank fraud scheme relating to their business, Assistant United States Attorney Jeffrey B. Jensen announced today.

According to the indictment and plea agreement, during 2006 and 2007, the Rickerts borrowed approximately $5,000,000 from five local banks to refurbish high-end properties in Ladue and Town & Country.  In order to obtain financing, they lied about their financial health and the likelihood that the properties would be quickly sold.  The senior Rickert had a prior federal fraud conviction in 2002.

GARY RICKERT, SR. and BRIAN RICKERT of Creve Coeur, admitted to submitting phony financial documents and tax information to their lenders in violation of Title 18, United States Code, Section 1344.  Brian Rickert also admitted to a money laundering charge relating to his use of the proceeds of the bank fraud.  The Rickerts also agreed to forfeit property they purchased with the proceeds of the crime - including an automobile and jewelry.  They appeared before United States District Judge Carol E. Jackson.

The Rickerts now face a maximum penalty of thirty years in prison and/or a one million dollar fine for bank fraud and up to ten years in prison and/or a $250,000 fine for money laundering.  Sentencing has been set for February 2, 2010.

“This case would not have been possible without long hours of work by the investigators and the professional cooperation of the victim-lenders.  Rooting out this kind of financial misconduct protects the credit markets and has an important deterrent effect on businesspeople who may be inclined to cut corners.”

“Bank fraud, like all financial crimes, adds to the underground economy, erodes the integrity of our tax system and threatens the financial health of our communities,” said Toni Weirauch, Special Agent in Charge of IRS-Criminal Investigation.