Federal agents flew 47-year-old former real estate executive Michael Fein to St. Louis on Thursday, after Israeli authorities signed off on his extradition to face federal bank- and wire-fraud charges in an alleged $28 million scheme tied to apartment complexes in Missouri and Oklahoma. Fein has been under civil litigation and federal scrutiny since a grand jury handed up an indictment in August 2020.
Extradition and arrival
According to federal prosecutors, Fein was living in Israel when Israeli officials approved his extradition in mid-May. They say he landed first at John F. Kennedy International Airport on Thursday, then was put on a flight to Lambert-St. Louis International Airport to await court proceedings, per the U.S. Attorney’s Office for the Eastern District of Missouri. The office notes Fein was indicted on August 20, 2020, on one count of bank fraud and one count of wire fraud and is expected to make his first appearance in U.S. District Court in St. Louis on Friday. The indictment also seeks forfeiture of at least $23 million in proceeds prosecutors say are tied to the alleged scheme.
Allegations against Fein
Prosecutors allege Fein and affiliated companies repeatedly sent lenders inflated rent rolls, income statements and occupancy numbers to secure or refinance loans on several properties, including the Pinnacle Ridge complex in St. Louis County, Green Village Townhomes in Kansas City and Ivy Place in Tulsa. Local coverage has documented years of tenant complaints and a 2020 ruling in which a judge found T.E.H. ran a “bait-and-switch” operation that led to a large class-action award, as reported by KMBC. Federal court filings outline what prosecutors describe as a pattern of false loan applications and padded occupancy figures that allegedly generated millions of dollars now targeted for forfeiture.
Tenants and federal fallout
The U.S. Attorney’s Office says a wave of tenant complaints led federal agencies in March 2020 to halt taxpayer-subsidized housing contracts with T.E.H. affiliates and move affected residents onto transfer vouchers while investigators built the case. The office credits the Federal Housing Finance Agency-OIG, HUD-OIG and the FBI with leading the probe and notes that U.S. and Israeli authorities worked together to secure Fein’s extradition. Whether the government can prove its allegations will play out in court records and future hearings.
What’s next and legal stakes
Fein faces federal bank- and wire-fraud charges that carry hefty potential prison time, although any sentence would be set by a judge using federal sentencing guidelines. Wire fraud carries a statutory maximum of up to 20 years in prison, and up to 30 years if the offense affects a financial institution, while bank fraud carries a maximum of 30 years, per 18 U.S.C. § 1343 and 18 U.S.C. § 1344 as summarized by Cornell Law School’s Legal Information Institute and Legal Information Institute. According to the U.S. Attorney’s Office, Assistant U.S. Attorney Hal Goldsmith will prosecute the case, and formal scheduling orders are expected after Fein’s initial appearance in federal court.
