St. Louis County Man Sentenced on Fraud Charges for Falsifying Mortgage Loan Application and Illegal Possession of Firearms

ST. LOUIS, MO – October 5, 2009 – (RealEstateRama) — Milton H. Ohlsen III was sentenced to 30 months in prison on bank fraud charges after overstating his income on his home mortgage application, and in a separate case, sentenced to 30 months in prison on a firearms charge, Acting United States Attorney Michael W. Reap announced today.  The sentences are to run concurrently.  In addition to the prison sentence, Ohlsen was ordered to pay restitution of $99,871.

In 2000, Milton Ohlsen originally financed his North Ballas Road residence with two loans totaling $302,000.  In 2002, Olsen refinanced with Merrill Lynch Corporation for $307,000, and in 2006 obtained another loan from Merrill Lynch for $150,000 for the same home.  In 2007, Olsen again refinanced the home with two loans, one for $470,000 from Countrywide, and $175,000 from Guaranty Bank, which paid off the previous Merrill Lynch loans. On both of the June 2007 loans Ohlsen falsified the loan applications to Countrywide and Guaranty Bank, stating that his monthly income was $15,000, when in fact it was substantially less.  In August 2007, Countrywide assumed the total line of credit from Guaranty Bank.  Shortly after, Ohlsen became delinquent in his monthly payments on the original Countrywide and Guaranty loans. In May 2008 Ohlsen was in default on these loans, and in June 2008, he filed bankruptcy.

MILTON H. OHLSEN III, St. Louis, Missouri, pleaded guilty last May to one felony count of bank fraud, one felony count of being a previously convicted felon in possession of firearms and bullets.  He appeared today for sentencing before United States District Judge Henry Autrey.

Reap commended the work performed on the case by the St. Louis County, Town and Country and Ladue Police Departments, the Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives.

United States Attorney’s Office
Eastern District of Missouri
Contact: (314) 539-7719