10.30.2009 2:54 pm

Downtown St. Louis developer indicted on fraud charges

By Robert Patrick
St. Louis Post-Dispatch

A downtown developer has been indicted on federal charges of money laundering and fraud for allegedly siphoning money from a multi-million dollar rehab project for his own use.

The indictment, made public Friday, accuses Clayton Hargrave of diverting money from a $10 million loan that he received from Great Southern Bank to rehab a seven-story building at 1511 Washington Avenue into two stories of commercial use and five stories of condos.

The indictment says that the bank sent $286,259 to a Chicago subcontractor in Sept. 2006, but behind the bank’s back, Hargrave had bargained the contract down to $203,357 and had the company send the rest of the money to him.

The indictment also says that Hargrave had another subcontractor send a check for $66,600 to Hargrave’s sister in Minnesota. The money then went to Hargrave’s creditors or into other Hargrave projects.

The project, over budget and behind schedule, was placed into receivership in July 2007. The bank is now owed $3 million, the indictment says.

Hargrave faces four counts of mail fraud, four counts of wire fraud and one count of money laundering.

Hargrave declined to comment when reached Friday afternoon.

Tags: Clayton Hargrave, developer, downtown St. Louis, loft district, mail fraud, money laundering, wire fraud
One comment

Calling Clayton Hargrave a Downtown Developer is misleading. He was a joke to downtown developers & anyone involved in downtown real estate. He ceased bean a downtown developer when his project was taken over by his lender in July 2007.
— wannatrythetruth
5:16 pm October 30th, 2009

10.30.2009 2:54 pm

Downtown St. Louis developer indicted on fraud charges

By Robert Patrick
St. Louis Post-Dispatch

A downtown developer has been indicted on federal charges of money laundering and fraud for allegedly siphoning money from a multi-million dollar rehab project for his own use.

The indictment, made public Friday, accuses Clayton Hargrave of diverting money from a $10 million loan that he received from Great Southern Bank to rehab a seven-story building at 1511 Washington Avenue into two stories of commercial use and five stories of condos.

The indictment says that the bank sent $286,259 to a Chicago subcontractor in Sept. 2006, but behind the bank’s back, Hargrave had bargained the contract down to $203,357 and had the company send the rest of the money to him.

The indictment also says that Hargrave had another subcontractor send a check for $66,600 to Hargrave’s sister in Minnesota. The money then went to Hargrave’s creditors or into other Hargrave projects.

The project, over budget and behind schedule, was placed into receivership in July 2007. The bank is now owed $3 million, the indictment says.

Hargrave faces four counts of mail fraud, four counts of wire fraud and one count of money laundering.

Hargrave declined to comment when reached Friday afternoon.

Tags: Clayton Hargrave, developer, downtown St. Louis, loft district, mail fraud, money laundering, wire fraud
One comment

Calling Clayton Hargrave a Downtown Developer is misleading. He was a joke to downtown developers & anyone involved in downtown real estate. He ceased bean a downtown developer when his project was taken over by his lender in July 2007.
— wannatrythetruth
5:16 pm October 30th, 2009

But I will give you a beer anyway. Must have Joe Merchant ID. I’ll be in biggie tea’s igloo or bigloo out back of the bg.

The 3rd tenant in the Buyers Market Lodge is much tougher to guess and probably requires that you have a turntable to figure it out. First one to get that one right gets a free gift at marks tomorrow night and a free beer at kickball thurs. Bloggers choice. Don’t be picky. 21 and up.