Update: Michael Litz was sentenced to 36 months in prison for his role. Timothy Murphy was sentenced to probation. No word yet on Shaun Hayes sentencing.
ST. LOUIS – A Clayton real estate developer, an ex-banker and a former loan officer all pleaded guilty to bank fraud in connection with a bank that failed in 2012.
According to a press release from the U.S. Attorney's Office, 56-year-old Shaun Hayes of Frontenac, 61-year-old Michael Litz of Ladue and 53-year-old Timothy Murphy of St. Louis have all pleaded guilty to bank fraud this month in connection with a fraud case that cost the bank millions.
Hayes bought a controlling stock interest in Excel Bank, based in Sedalia, Missouri, in 2007. Indictments alleged that the men defrauded the bank, inducing it to purchase loans in which Litz's company, Eighteen Investments, was delinquent on more than $100 million in loans.
A press release said Murphy admitted to assisting Hayes in unlawful self-dealing by making which directly benefited Hayes and his associates while concealing Hayes’s interest in the loans.
Sentencing for all three will be in April.
The Associated Press contributed to this story.
