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Banks (Finance)

Developer Pleads Guilty to Bank Fraud, Triggering Estimated $14 Million in Losses

Strategic Insights

— 1 min read

Edward A. Levinson, a 50-year-old developer from Chesterfield, pleaded guilty to a bank fraud charge in federal court, admitting to triggering losses of between $7 million and $20 million. Levinson's guilty plea follows an indictment in January, which accused him of running a monetary shell game, lying to bankers, and using home buyers' deposits on other projects.

Key Takeaways:

  • Levinson's scheme involved using home buyers' deposits and down payments on other projects, resulting in a loss for Royal Banks of $1.5 million, Enterprise Bank and Trust $1 million, and subcontractors approximately $500,000.
  • The foreclosure of the Belle Maison subdivision in Creve Coeur cost First Bank $8 million and resulted in a loss to home buyers of about $241,000 and approximately $1 million in liens against First Bank.
  • Levinson's company, founded over 50 years ago by his father, built more than 20 developments, primarily in west St. Louis County.
  • Levinson's money troubles began in 2007 when Royal Banks of Missouri "became uncomfortable" with his outstanding loans, prompting him to lie to bankers and continue using home buyers' deposits.
  • Levinson was a Chesterfield city councilman in the 1990s and could face 51 to 63 months in prison when sentenced on April 2, under federal sentencing guidelines.

Statistics:

  • Estimated losses: $14 million
  • Estimated losses triggered by Levinson's scheme: between $7 million and $20 million
  • Losses for Royal Banks of Missouri: $1.5 million
  • Losses for Enterprise Bank and Trust: $1 million
  • Losses for subcontractors: approximately $500,000
  • Losses for First Bank in the foreclosure of Belle Maison Subdivision: $8 million
  • Losses to home buyers in Belle Maison Subdivision: approximately $241,000
  • Liens against First Bank by unpaid subcontractors: approximately $1 million

Sources:

  • "Developer pleads guilty to bank fraud, triggering estimated $14 million in losses" by Post-Dispatch, no date specified
  • Indictment of Edward A. Levinson, January 2023 (exact date not specified)
  • "FBI: Developer's lies dug him in" by Post-Dispatch, no date specified

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