St. Charles-Area Developer Indicted on Federal Bank Fraud Charges

ST. LOUIS, MO—The United States Attorney’s Office announced today that Gary Vehlewald was indicted on bank fraud charges involving the development of Springwell Village in St. Charles, Missouri.

According to the indictment, Vehlewald was a residential developer doing business under the names of Springwell Village Development and Vehlewald Construction, Inc. In 2006, he and his company secured loans from Premier Bank for the land purchase, and in 2007, for the construction of eight single-family residences. The indictment states that in July 2008, a Premier Bank appraisal showed that $1,802,434 had been drawn on the construction loan. However, the properties only appraised for approximately $990,000. Premier Bank discovered that Vehlewald used Springwell Village loan disbursements for personal expenses and to fund other construction projects.

GARY VEHLEWALD, St. Charles, Missouri, was indicted by a federal grand jury on two felony counts of bank fraud. He appeared in federal court earlier today.

If convicted, each count of bank fraud carries a maximum penalty of 30 years in prison and/or fines up to $1,000,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.

This case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Dianna Collins is handling the case for the U.S. Attorney’s Office.

As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.