Englewood I Development Owners Sentenced
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St. Louis, MO. (KMOX) - The United States Attorney’s Office announced that Thomas Colvin and Kristaq Gjordeni, who operated Englewood I Development LLC, were sentenced Friday on bank fraud charges.
Thomas Colvin was sentenced to 27 months in prison and was ordered to pay restitution of $666,689. Kristaq Gjordeni was sentenced to time served (one day) followed by five years supervised release, and was ordered to pay restitution of $158,485.
Court documents state Colvin and Gjordeni obtained a loan to purchase land for the development of The Bluffs at Green Chutes in St. Charles County. In March 2006, Sun Security financed Englewood’s land acquisition and development of 45 acres located on Green Bottoms Road in St. Charles, MO. The original loan was for $3.8 million, but was later increased to $5.1 million.
The purpose of the loan was to develop the 45-acre tract into 33 single-family lots. The funds were disbursed from an escrow account based upon requests from Colvin and Gjordeni. Near the time of the loan, Colvin and Gjordeni began experiencing financial difficulties related to other existing projects. As a result they began to misuse loan funds from the Bluffs project in order to pay on unrelated loans and personal expenses. By late 2007, nearly all of the funds had been disbursed, but the Bluffs development was far from complete. Colvin and Gjordeni executed their scheme by making disbursement requests to the bank, via a disbursing agent, for funds for the Bluffs project all the while knowing that they would not use the funds for the project.
Colvin and Gjordeni, previously pled guilty to three felony counts each of bank fraud.
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