In the following press release the United States Attorney’s Office for the Eastern District of Missouri announced that a St. Charles area developer/mortgage broker and a Lake St. Louis woman have been indicted on multiple fraud charges.

Jeremy Beadle was President of Network Ventures, a business engaged in mortgage processing and real estate brokerage, and also the rehabilitation of real estate properties in need of repairs.  Beadle also operated and managed Premier Mortgage Funding, a mortgage brokerage company, owned by Network Ventures.

Rebecca J. Domecillo was an officer of Network Ventures of St. Charles County, a mortgage processing and brokerage business.  Domecillo also participated in the operations and management of Premier Mortgage Funding.

According to the indictment, between November 2005 and December 2008, Beadle purchased properties and resold them at higher prices based on fraudulent and inflated appraisals to individuals who were qualified for mortgages based on false loan applications.

In November 2005, Beadle purchased five distressed properties located in the City of St. Louis on Labadie Avenue for $32,000 each.  He made limited renovations to the properties and then sold them.  He submitted false mortgage loan applications overstating the borrowers’ monthly income and falsely representing that they would occupy the properties as their primary residences. Beadle provided the funds for the down payments on the sales by depositing funds into the borrowers’ accounts.  Beadle received the sales proceeds when the properties were sold.  Between March and September 2006, the indictment alleges that Beadle realized a profit of approximately $160,000 from the sale of the properties.

On September 8, 2006 Beadle purchased a property located on Normandy Drive in Lake St. Louis for $315,000, which he resold for $411,000 in January 2007.  Beadle prepared a false mortgage loan application for the buyer misrepresenting the borrower’s income and assets. Beadle received a profit of $89,000.

Beadle also purchased properties from homeowners who were in financial difficulty and in danger of foreclosure.  He falsely represented to these sellers that they could rent the property and remain in their homes, and that the mortgage would be paid using the rent payments made by the residents of the property.

In January 2006, Beadle offered to purchase real estate properties from individuals who needed to refinance the mortgages on their residences because they were in danger of foreclosure.  Beadle offered to purchase these properties for a price in excess of the balance of the existing mortgage.  He told the sellers they could rent the properties and he would apply the rent payment to the mortgage.  However, he did not apply all the rent payments to the mortgage.  Beadle failed to make the mortgage payments as agreed, and these properties were foreclosed, resulting in losses to the mortgage lenders.

The indictment alleges that Domecillo employed family members at Premier Mortgage Funding and also used family members, including her mother and daughter, as straw parties in real estate transactions she arranged.

Between June 2005 and December 2008, Domecillo arranged for the purchase of real estate by straw parties, including family members, for a price in excess of the sales price set by the seller, and applied for mortgage loans in the names of the straw parties. Domecillo supplied fraudulent information to mortgage lenders on behalf of the straw parties, including false information about their income, employment, the purpose of the loan, current rental agreements on the property, and assets.  This information was used by the mortgage lenders to determine the borrowers’ eligibility for the loans. At the time of closing of the sale of the property, Domecillo supplied fraudulent invoices to the closing agent, allegedly representing the cost of repairs to the property, which were to be paid from the seller’s proceeds. The indictment states that Domecillo received the funds but used them for her own benefit, instead of for repairs on the properties. 

Domecillo acted as the real estate manager of the properties purchased by the straw parties and assumed responsibility for collecting all rent payments and making the mortgage payments on properties.  However, the indictment alleges that because Domecillo failed to make the mortgage payments, these properties were foreclosed, resulting in losses to the mortgage lenders.

Jeremy Beadle, 37, St. Charles, MO, was indicted February 4, 2010, on seven felony counts of wire fraud and two felony counts of mail fraud.

Demecillo, 48, Lake St. Louis, MO, was indicted by a federal grand jury February 4, on eight felony counts of mail fraud.

If convicted, each count of the indictment carries a maximum penalty of 20 years in prison and/or fines up to $250,000.

This case was investigated by the Federal Bureau of Investigation.  Assistant United States Attorney Rosemary Meyers 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.