Jay Dunlap, Wire Fraud, Missouri 2013

A St. Louis man has been convicted of defrauding his ex-partners and banks in an equity-stripping scheme.

Jay Dunlap was found guilty of three felony counts of wire fraud, one felony count of bank fraud, and one felony count of mail fraud after a four-day trial in front of United States District Judge E. Richard Webber.

According to testimony presented at the trial, Dunlap convinced a partner to put up more than $270,000 to acquire and rehabilitate a property in the City of St. Louis. However, unbeknownst to the ex-partner, Dunlap titled the property in the name of an LLC controlled by two of his friends.

Dunlap then directed his friends to borrow against the equity in the home and used the proceeds to pay his expenses and those of his friends.

Dunlap now faces a maximum penalty of 20 years in prison and/or fines up to $250,000 per count. Restitution is also mandatory.

The case was investigated by the U.S. Postal Inspection Service and the Federal Housing Finance Agency-Office of Inspector General. Assistant United States Attorneys Tom Albus and Dianna Collins prosecuted the case for the U.S. Attorney's Office.

Sentencing has been set for July 19, 2013.

Jay Dunlap's conviction is a significant blow to those involved in equity-stripping schemes, which can have devastating consequences for victims.

Source: https://www.justice.gov/usao-edmo/pr/st-louis-man-convicted-fraud-charges