A developer from Ladue pleaded guilty to a federal charge of misapplying bank funds Tuesday and admitted helping defraud a bank to pay off millions of dollars in delinquent real estate loans.
Michael Litz, 63, admitted “aiding and abetting” co-defendant Shaun R. Hayes in misusing funds of former Sedalia-based Excel Bank by concealing loans from the bank and regulators, according to his plea, with the intent to defraud Excel.
“The two men worked together to enrich themselves at the expense of Excel Bank,” said Special Agent in Charge Richard Quinn of the FBI St. Louis Division. “This type of self-dealing and fraud violates the integrity of our banking system and undermines consumer confidence.”
Litz’s plea closely follows the guilty pleas of Hayes and Timothy Murphy, a former loan officer and executive vice president of Excel Bank, which made the loans.
Under Litz’s plea, he could face 30 to 37 months in prison.
Read more: St. Louis Post-Dispatch