Floyd Irons Press Release (Sentencing)

March 25, 2008
For Immediate Release

FLOYD IRONS, FORMER VASHON HIGH SCHOOL COACH, IS SENTENCED ON FEDERAL MORTGAGE FRAUD CHARGES

St. Louis, Missouri: Floyd Irons, Michael Noll and John Mineo, Jr., a local restaurant operator, were sentenced to 12 months, 20 months and 12 months and 1 day in prison, respectively, on wire and mail fraud charges in connection with a million dollar mortgage fraud scheme, United States Attorney Catherine L. Hanaway announced today. Additionally, Irons and Mineo were ordered to pay restitution of $653,147 and Noll was ordered to pay restitution of $1,032,212 to the victim lending institutions.

During the course of this scheme, Irons was employed by the St. Louis Public Schools. Mineo operated his restaurant and was employed as a mortgage broker at Midwest Mortgage Consultants, LLC.

During late 2005, Irons and Michael Noll met with John Mineo, Jr. and told him of their scheme to purchase residential real estate for investment purposes. They told him that they would obtain mortgage loans for these residential purchases through him at the mortgage brokerage company where he was employed, Midwest Mortgage Consultants, LLC., for 10% or more of the home sales price to be “kicked back” to them. Additionally, Irons and Noll told Mineo that Irons would be identified as the sole purchaser of these residential properties, but that Irons and Noll were in business together, and that the mortgage loans would actually be paid by Michael Noll.

During November 2005, Irons and Noll agreed to have Floyd Irons' son act as a straw purchaser of a residence at 1205 Missouri Avenue, St. Louis, for a purchase price of $167,000. Noll had previously purchased the residence in June for $150,000. Irons’ son, who was a full-time student, was not going to live in the residence, and it was understood that Irons and Noll would make the payments on the loans obtained to finance the purchase. Irons and Noll falsified information on the loan application in order to obtain the loan and as a result FMF Capital issued the loan for the purchase. As a result of this transaction, Noll's first and second mortgages were paid off, and he received an additional $5,084 on the sale. No payments were made following June 2006, and the property was ultimately foreclosed on for non-payment.

In December 2005, Mineo arranged for Irons and Noll to purchase real estate at 3138-40 Michigan Avenue for $190,000. The seller had purchased the four-family property during May 2005 for $125,000. Irons, Noll and Mineo filed a false loan application and Irons obtained a mortgage loan for $180,500 in January 2006. With Irons’ and Mineo’s knowledge, Noll received a “kick back” of $20,000 from the sale proceeds and Mineo received $3,891 in broker fees.

Shortly after the purchase of the Michigan Avenue property, Mineo contacted Noll, who agreed that he and Irons would purchase a property at 18433 Woodland Meadows Drive in Glencoe, Missouri, for $450,000, with $40,000 being “kicked back” to them from the purchase price. Irons and Noll submitted a false loan application in Irons' name to Midwest Mortgage and obtained the loans. Mineo received $8,850 in broker fees. The property had previously sold for $240,000 in December 2004. Mineo’s company also received $23,000 from the seller’s proceeds.

On January 31, 2006, one day after closing on the Woodland Meadows property, Mineo arranged for the purchase of residential real estate at 11 Arundel, St. Louis, for $830,000, with $60,000 being “kicked back” to them from the purchase price. After falsifying the loan application, Irons and Noll obtained the loans for the purchase of the Arundel property. Mineo received $5,720 in broker fees. The property had previously sold for $260,000 in 1998.

Last September, Irons pled guilty to one felony count of wire fraud and one felony count of mail fraud; and Mineo pled guilty to one felony count of mail fraud. Michael Noll, Chesterfield, pled guilty October 25 to one felony count of wire fraud and one felony count of mail fraud. All defendants were sentenced late Monday before United States District Judge E. Richard Webber.

Hanaway commended the work performed on the case by the Federal Bureau of Investigation, the Department of Housing and Urban Development-Inspector General, Internal Revenue Service-Criminal Investigation, and Assistant United States Attorney Hal Goldsmith, who is handling the case for the U.S. Attorney’s Office.

UNITED STATES ATTORNEY'S OFFICE EASTERN DISTRICT OF MISSOURI CATHERINE L. HANAWAY United States Attorney	NEWS RELEASE
For further information: Call Public Affairs Officer Jan Diltz at (314) 539-7719
March 25, 2008 For Immediate Release FLOYD IRONS, FORMER VASHON HIGH SCHOOL COACH, IS SENTENCED ON FEDERAL MORTGAGE FRAUD CHARGES St. Louis, Missouri: Floyd Irons, Michael Noll and John Mineo, Jr., a local restaurant operator, were sentenced to 12 months, 20 months and 12 months and 1 day in prison, respectively, on wire and mail fraud charges in connection with a million dollar mortgage fraud scheme, United States Attorney Catherine L. Hanaway announced today. Additionally, Irons and Mineo were ordered to pay restitution of $653,147 and Noll was ordered to pay restitution of $1,032,212 to the victim lending institutions. During the course of this scheme, Irons was employed by the St. Louis Public Schools. Mineo operated his restaurant and was employed as a mortgage broker at Midwest Mortgage Consultants, LLC. During late 2005, Irons and Michael Noll met with John Mineo, Jr. and told him of their scheme to purchase residential real estate for investment purposes. They told him that they would obtain mortgage loans for these residential purchases through him at the mortgage brokerage company where he was employed, Midwest Mortgage Consultants, LLC., for 10% or more of the home sales price to be “kicked back” to them. Additionally, Irons and Noll told Mineo that Irons would be identified as the sole purchaser of these residential properties, but that Irons and Noll were in business together, and that the mortgage loans would actually be paid by Michael Noll. During November 2005, Irons and Noll agreed to have Floyd Irons' son act as a straw purchaser of a residence at 1205 Missouri Avenue, St. Louis, for a purchase price of $167,000. Noll had previously purchased the residence in June for $150,000. Irons’ son, who was a full-time student, was not going to live in the residence, and it was understood that Irons and Noll would make the payments on the loans obtained to finance the purchase. Irons and Noll falsified information on the loan application in order to obtain the loan and as a result FMF Capital issued the loan for the purchase. As a result of this transaction, Noll's first and second mortgages were paid off, and he received an additional $5,084 on the sale. No payments were made following June 2006, and the property was ultimately foreclosed on for non-payment. In December 2005, Mineo arranged for Irons and Noll to purchase real estate at 3138-40 Michigan Avenue for $190,000. The seller had purchased the four-family property during May 2005 for $125,000. Irons, Noll and Mineo filed a false loan application and Irons obtained a mortgage loan for $180,500 in January 2006. With Irons’ and Mineo’s knowledge, Noll received a “kick back” of $20,000 from the sale proceeds and Mineo received $3,891 in broker fees. Shortly after the purchase of the Michigan Avenue property, Mineo contacted Noll, who agreed that he and Irons would purchase a property at 18433 Woodland Meadows Drive in Glencoe, Missouri, for $450,000, with $40,000 being “kicked back” to them from the purchase price. Irons and Noll submitted a false loan application in Irons' name to Midwest Mortgage and obtained the loans. Mineo received $8,850 in broker fees. The property had previously sold for $240,000 in December 2004. Mineo’s company also received $23,000 from the seller’s proceeds. On January 31, 2006, one day after closing on the Woodland Meadows property, Mineo arranged for the purchase of residential real estate at 11 Arundel, St. Louis, for $830,000, with $60,000 being “kicked back” to them from the purchase price. After falsifying the loan application, Irons and Noll obtained the loans for the purchase of the Arundel property. Mineo received $5,720 in broker fees. The property had previously sold for $260,000 in 1998. Last September, Irons pled guilty to one felony count of wire fraud and one felony count of mail fraud; and Mineo pled guilty to one felony count of mail fraud. Michael Noll, Chesterfield, pled guilty October 25 to one felony count of wire fraud and one felony count of mail fraud. All defendants were sentenced late Monday before United States District Judge E. Richard Webber. Hanaway commended the work performed on the case by the Federal Bureau of Investigation, the Department of Housing and Urban Development-Inspector General, Internal Revenue Service-Criminal Investigation, and Assistant United States Attorney Hal Goldsmith, who is handling the case for the U.S. Attorney’s Office.