Eric Christian Gagnepain pleaded guilty Feb. 29 to his role in unlawful real estate schemes conducted by Springfield-based Greenleaf Cos. LLC and The Real Estate Co. Inc.
Gagnepain, former co-owner of Greenleaf, pleaded guilty before a federal court in Springfield to 19 counts in a February 2011 indictment, comprising 10 counts of securities fraud and nine counts of unlawful merchandising practices, according to a news release from Missouri Attorney General Chris Koster's office.
Gagnepain could receive a prison sentence of seven to 10 years, according to Koster. A sentencing has been scheduled for Aug. 3. Gagnepain previously was scheduled to appear before a jury for trial March 12.
According to
Springfield Business Journal archives, Gagnepain solicited investors with good credit to purchase homes selected by Greenleaf in exchange for a payment of $10,000. Greenleaf was responsible for the down payment, the closing costs and for reselling the homes.
When soliciting investors, Gagnepain willfully failed to advise them of the company's weak financial condition and that financial institutions were being misled about the true source of the down payments. When Greenleaf and The Real Estate Co. resold the homes, Gagnepain failed to tell the purchasers that the titles of the homes were held by the investors and failed to advise consumers when their homes were in danger of foreclosure, the release said.
Greenleaf typically solicited investors with good credit and marketed the residential properties to people with troubled credit histories, and it failed to make full payments to investors, according to SBJ archives.
Lane Sanders, of Ozark, former president of Greenleaf Cos., pleaded guilty Feb. 3, 2011, to one count of securities fraud and one count of unlawful merchandising practices. His sentencing hearing is pending.
The cases for four others involved in the schemes are pending, according to the release.
William Strong, of Springfield, former Greenleaf vice president of finance and daily operations, waived his right to a jury trial and a bench trial began Feb. 7 with Greene County Circuit Court Judge Calvin Holden presiding, and closing arguments were scheduled to start Feb. 15.
Misty May Perkins, of Highlandville, former Greenleaf director of investor relations, awaits a jury trial scheduled May 21.
Scott Dasal, of Springfield, former president of The Real Estate Co., has a Sept. 10 jury trial.
Robert Batchman, of Ozark, former real estate broker for The Real Estate Co., faces a jury trial scheduled for March 4, 2013.
Since late 2008,
authorities have been investing the companies for mortgage fraud, and in December 2010, the attorney general's office received a summary judgment barring the companies from buying or selling homes and ordering them to pay $338,000 in restitution.
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