LINKEDINCOMMENTMORE

ST. LOUIS - A 43-year-old O'Fallon, Missouri man was sentenced Monday to 24 months in federal prison on fraud conspiracy charges, U.S. Attorney Richard Callahan said.

According to court documents, Jason Rauschelbach was the president of Title America and the CEO of The Mortgage Store, Inc. By 2008, TMS was a major mortgage company, with offices in four states and hundreds of employees; its main offices were located in Westport Plaza and Wentzville.

Both businesses were running at a deficit. TMS alone incurred more than $600,000 in federal employment tax liabilities.

In order to cover certain business expenses and conceal the aforementioned deficit, Rauschelbach and others at TMS moved money from checking accounts of both TMS and Title America around. When banks stopped accepting the "floated" checks in June 2008, TMS had a negative balance of approximately $850,000.

Prosecutors said Rauschelbach also pocketed money from both companies in the scheme, and that he and others at TMS used funds to pay down loans on properties at Tab Tar A Resorts at Lake of the Ozarks, and for a ranch property in Breckenridge, Colorado.

Rauschelbach will voluntarily surrender to prison when designated by authorities.

Read or Share this story: http://on.ksdk.com/1mJVXBq