Missouri Developer Sentenced in Large Fraud of Sedalia Bank
A St. Louis-area developer who along with a former banker defrauded a Sedalia bank out of millions of dollars has been sentenced to three years in jail.
The St. Louis Post-Dispatch reports Michael Litz, of Ladue, was sentenced Monday for misapplying bank funds. He also was ordered to pay about $5 million in restitution.
Litz and his business partner, Shaun Hayes, were accused in 2016 of defrauding Excel Bank of up to $10 million. Regulators closed the bank in 2012.
Hayes and Litz co-owned a limited liability corporation that developed property in St. Louis County. Hayes ,who had a controlling interest at Excel Bank, was accused of using his influence to have the bank buy delinquent loans from the corporation and an investment firm operated by Litz.
Hayes is scheduled to be sentenced May 23.