O’Fallon Man Sentenced to Prison on Fraud Conspiracy
ST. LOUIS (KMOX) – Jason Rauschelbach was sentenced to two years in federal prison after pleading guilty to conspiring to defraud the United States and several banks through his business, The Mortgage Store, Inc., in 2008.
Rauschelbach was also ordered to pay restitution.
According to court documents, Rauschelbach was the CEO of The Mortgage Store, Inc., a major mortgage brokering business, and the president of Title America. The Mortgage Store had officers in four states and hundreds of employees, and the main offices were in Westport Plaza and Wentzville.
The businesses were operating at a financial deficit in 2008. The Mortgage Store incurred over $600,000 in federal employment (including withholding) tax liabilities in the first three quarters of 2008 that were not paid over to the United States. There were not sufficient funds available to fund the disbursements from The Mortgage Store and, in addition, to meet all of the expenses incurred by The Mortgage Store including the delinquent employment tax liabilities.
In order to meet certain expenses and, at the same time, conceal the absence of adequate funds, Rauschelbach and others at The Mortgage Store caused insufficient funds checks drawn on the checking accounts of both The Mortgage Store and Title America to be deposited between those accounts in such a way that the “float” concealed the true balances of each account. The accounts were at Enterprise Bank in Clayton and at the First Bank of the Lake in Osage Beach, Missouri. The account for The Mortgage Store had a negative balance of approximately $850,000 in June, 2008, when the banks stopped accepting the floated checks.
Rauschelbach’ s guilty plea also involved submitting a false net worth statements to HUD and failing to pay over about $31,000 in employees’ withholdings for a 401K plan and health insurance. Restitution payments will be first directed to reimburse those employees.
Court documents showed that Rauschelbach pocketed money from both The Mortgage Store and Title America, and that he used company funds to pay loans on properties at Tan Tar A Resorts in the Lake of the Ozarks, and for a ranch property in Breckenridge, Colorado. He was a partial owner of those properties.
Rauschelbach, 43, of O’Fallon, Missouri, will voluntarily surrender to a prison facility when it is designated.
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