A fugitive charged in a multi-million-dollar apartment loan fraud case has been brought back to the United States from Israel to face federal charges linked to falsified loan applications and inflated occupancy and income figures across several Missouri and Oklahoma properties.
Michael Fein, now 47, was indicted in August 2020 on counts of bank fraud and wire fraud tied to dealings by companies he co-owned. Prosecutors accuse him of repeatedly submitting false information on loan applications to secure financing and refinance projects for his firm and affiliated entities.
Federal agents tracked Fein to Israel and pursued an extradition request through international channels, which was approved in mid-May by the acting Israeli official responsible for such matters. He arrived back in the United States at John F. Kennedy International Airport and was then transported to St. Louis for processing and detention before facing federal court.
“I’m very pleased that Michael Fein will be returned to St. Louis to face trial on the accusations that he fraudulently obtained millions of dollars,” U.S. Attorney Thomas C. Albus said, underscoring the government’s intent to try the case in the district where many of the alleged acts occurred. The indictment paints Fein as an executive who ran day-to-day operations for his management company and directed its affiliated businesses.
Investigators say Fein and his companies owned and operated multiple multi-family complexes, including the 168-unit Pinnacle Ridge in St. Louis County, the 304-unit Green Village Townhomes in Kansas City, and the 260-unit Ivy Place Apartments in Tulsa. The indictment details alleged manipulations of occupancy and income figures to make loans appear lower risk and more lucrative than they were in reality.
“This case reflects the Federal Housing Finance Agency Office of Inspector General’s (FHFA-OIG) steadfast commitment to investigating and bringing to justice those who defraud Fannie Mae and Freddie Mac, or the financial institutions engaged in the housing mortgage market. We are thankful to HUD OIG and the FBI for their partnership in this investigation, and to the U.S. Attorney’s Office, the Justice Department’s Office of International Affairs, and the U.S. Marshal’s Service for their extraordinary efforts in securing the extradition of the defendant,” said Special Agent in Charge Korey Brinkman, Central Region, FHFA-OIG, stressing the cross-agency cooperation behind the case.
https://x.com/FBIStLouis/status/2070644540768153960
The indictment alleges that between 2016 and 2019 Fein inflated tenant counts and income numbers, including claims that Pinnacle Ridge and other complexes housed far more residents than records and inspectors later indicated. Those inflated figures allegedly helped obtain a $2.8 million loan for Pinnacle Ridge and supported subsequent refinancing and cash-out transactions.
Allegations also include a 2016-2017 refinance of Green Village that reportedly overstated occupancy from 50 percent to 88.49 percent and produced a $12.5 million loan, after which an affiliate received roughly $6 million. A separate 2017 refinance for Ivy Place is described as having boosted occupancy from 66.5 percent to 96.54 percent, with nearly $1 million flowing to an affiliated entity after the $7.7 million loan closed.
In 2019, prosecutors say Fein tried to purchase another St. Louis-area complex by submitting loan documents that included an inflated summary of assets and occupancy rates across a portfolio of properties. That $5.2 million application was not approved, but the indictment seeks forfeiture of at least $23 million tied to the alleged scheme.
“No one is above the law,” said Special Agent-in-Charge Machelle Jindra with the U.S. Department of Housing and Urban Development, Office of Inspector General. “Our office will continue to work with the U.S. Attorney’s Office and our law enforcement partners to investigate those who threaten the integrity of FHA mortgage programs and hold them accountable for their actions.”
“Michael Fein may have believed that leaving the United States would place him beyond the reach of law enforcement after allegedly swindling millions of dollars from multiple banks,” said Special Agent in Charge Chris Crocker of the FBI St. Louis Division. “Bringing Fein back to face justice required years of coordinated effort. This case sends a clear message: no matter where a fugitive runs, the FBI and its partners will relentlessly pursue those who commit serious crimes and attempt to evade accountability.”
During March 2020, federal authorities suspended taxpayer-subsidized housing contracts and funding for the affiliated companies amid widespread tenant complaints about substandard living conditions. The government arranged transfer vouchers for affected low-income residents so they could move into safer, more suitable housing while the investigations progressed.
The investigation was led by multiple federal watchdogs and law enforcement teams working in coordination with Israeli authorities, the Justice Department’s Office of International Affairs, and the U.S. Marshals Service to secure extradition. Assistant U.S. Attorney Hal Goldsmith is assigned to prosecute the case as it moves forward in federal court.
