ST. LOUIS (AP) — A man from Israel who is an investor and managing partner of a company that operates low-income housing apartment complexes in St. Louis and elsewhere is facing federal fraud charges.
The U.S. Attorney’s office in St. Louis announced on Thursday that Michael Fein, 41, of T.E.H. Realty had been indicted for bank and wire fraud. The charges are related to $28 million in loans for the purchase of properties in St. Louis, Kansas City, Mo., and Tulsa, Okla.
The allegations essentially accuse Fein of falsely inflating occupancy rates and net income to secure loans for the purchase or refinancing of various properties.
T.E.H. Realty affiliates, organized as limited liability companies, bought 12 large apartment complexes in the St. Louis region alone starting in late 2014. Many of them became mired in foreclosure, bankruptcy and receivership amid reports of problems ranging from fallen ceilings to broken heating and air conditioning.
Fein told the newspaper that he was unaware of the indictment, and declined comment.