Two St. Louis-area investors have been indicted on charges they defrauded the failed Excel Bank on real estate loans.

Shaun Hayes and Michael Litz were indicted on April 13 on charges of bank fraud, misapplication of bank funds and causing false entries to be recorded, according to the U.S. Attorney’s Office for the Eastern District of Missouri.

Hayes had purchased a majority interest in Excel Bank, based in Sedalia, Mo., in 2007, according to the indictment. Hayes and Litz both were involved in real estate development companies in the St. Louis area.

Hayes directed Excel Bank to purchase at a discount about $4 million of loans on which Hayes' and Litz's companies were delinquent, and hid those purchases from the bank's board. The delinquent loans had been held by the $954 million-asset Centrue Financial in Ottawa, Ill. Hayes and Litz later set up a straw party, which they used to pay off some of the Centrue Bank loans.

Excel Bank had accepted funds from the Treasury Department's Troubled Asset Relief Program, and Hayes' and Litz's actions resulted in about $4 million of Tarp losses. Excel Bank itself lost money as a result of Hayes' and Litz's scheme. Regulators closed Excel Bank in October 2012 and its assets were acquired by the $7.5 billion-asset Simmons First National in Pine Bluff, Ark.

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