ST. LOUIS, Mo. — A developer in the St. Louis area has pleaded guilty to bilking two investors out of more than $724,000.
The St. Louis Post-Dispatch reports that Paul Creager, of Wildwood, entered the pleas Thursday to two federal counts of wire fraud. His sentencing is scheduled for March 21.
Prosecutors say that between June and September last year, Creager solicited investments in exchange for an ownership stake in his construction business. One investor gave him $100,000, and the other invested more than $624,000.
But Creager was hiding a $3.2 million, high-interest loan from his investors that was secured by virtually all his business and personal assets. Prosecutors say that when Creager’s lender foreclosed, the investors were wiped out.
Information from: St. Louis Post-Dispatch, http://www.stltoday.com