Developer Litz gets 3 years in prison in fraud case

Michael Litz, a developer from the St. Louis area who worked with former banker Shaun Hayes to defraud a bank and pay off millions of dollars in real estate loans, has been sentenced to 36 months in prison.

Litz’s businesses, Bellington Realty and Eighteen Investments, had a portfolio of more than 1,000 rental properties in the St. Louis area and, according to the U.S. attorney’s office, Eighteen Investments was delinquent on more than $100 million in loans in 2009.

In January, Litz pleaded guilty to misapplying bank funds. He helped Hayes, who also pleaded guilty, in misusing funds from Excel Bank, a Sedalia-based bank.

Litz was also sentenced to five years of supervised release after his prison time and ordered to pay about $5 million in restitution.

Read more: St. Louis Post-Dispatch

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