Tuesday, May 10, 2011

St. Charles County Developers Indicted Bank Fraud Charges

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Two St. Charles County developers indicted on bank fraud charges

BY ROBERT PATRICK
post-dispatch.com
May 10, 2011
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ST. LOUIS • Two former St. Charles County home developers have been indicted in federal court here on three counts of bank fraud each, the U.S. Attorney's office said Tuesday.
Thomas Colvin, 53, and Kristaq Gjordeni, 53, owners of Englewood I Development LLC, misused part of a $5.2 million loan that was supposed to go towards the development of The Bluffs at Green Chutes, 33 one-acre homes on a 45-acre parcel on Greens Bottom Road, prosecutors said.
The pair started with a $3.8 million Sun Security loan in 2006. By late 2007, all the money had been disbursed by the bank, but the development was not done.
Sun later discovered that the pair had used some of the loan funds to pay other loans and non-project expenses, prosecutors said. They also paid themselves $168,000 for "supervision" and their company $500,000 for administration, expenses that had not been included in cost estimates, prosecutors said.
Colvin is from Lake Ozark, Mo. and Gjordeni is from St. Louis County, prosecutors said.




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