Neelyville property used in fraud scheme

ST. LOUIS -- A St. Louis-area man pleaded guilty Wednesday in federal court to fraud charges stemming from fictitious real estate transactions involving property in the Poplar Bluff, Missouri, area.

Ronald L. Roberts, 54, of Town and Country, Missouri, pleaded guilty to three felony counts of wire fraud and one felony count of mail fraud before U.S. District Judge E. Richard Webber, according to the U.S. Attorney's Office.

Webber set sentencing for Oct. 16.

At that time, Roberts faces a maximum of 20 years in prison and/or fines of up to $250,000 on each count.

Roberts had been accused of obtaining more than $1 million from lenders in what he now admits was a loan-fraud scheme.

According to court documents, Roberts solicited personal loans for a fictitious real estate transaction involving property in or around Poplar Bluff, which Roberts claimed he owned and planned to sell to Walmart.

In some instances, Roberts claimed the funds were needed to buy out the interests of family members, including his half-brother, who purportedly had asserted claims against the property. In others, Roberts reportedly claimed it was necessary to extinguish liens or perform environmental remediation. In others, Roberts claimed one or more parties were demanding additional sums to close the transaction.

Roberts usually promised lenders their money would be returned in a matter of days or weeks, usually with considerable interest, or they would receive a portion of the profits Roberts expected to generate from the fictitious transaction.

The rate of return promised by Roberts varied from zero percent to at least as much as 180 percent, with terms varying between a couple of weeks and a few hours.

In truth, Roberts owned a piece of property of fewer than 10 acres in Neelyville, Missouri. At the time of Roberts' representations, the property had a market value of less than $30,000 and was encumbered by a judgment against Roberts in excess of $13 million, making the property worthless to him.

According to earlier reports, Roberts had claimed he would receive between $7 million and $22 million after the property was sold to Walmart.

During the scheme, Walmart had not made any offer to buy the property, nor did it have any plans to develop additional land in or near Poplar Bluff, which already has a Walmart store.

Instead, Roberts employed funds given to him by lenders for his personal use.

An indictment against Roberts shows he used the diverted funds for gambling at the River City Casino, among other things. The indictment also alleged Roberts caused more than $2.5 million in losses as a result of the fraud.