St. Louis Man Pleads Guilty to Mortgage Fraud

Milton H. Ohlsen III, of St. Louis, pleaded guilty before U.S. District Judge Henry Autrey to bank fraud after overstating his income on his home mortgage application. In 2000, Ohlsen originally financed his North Ballas Road residence with two loans totaling $302,000. In 2002, Olsen refinanced with Merrill Lynch Corp. for $307,000, and in 2006 obtained another loan from Merrill Lynch for $150,000 for the same home. In 2007, Olsen again refinanced the home with two loans, one for $470,000 from Countrywide and $175,000 from Guaranty Bank, which paid off the previous Merrill Lynch loans. On both of the June 2007 loans Ohlsen falsified the loan applications to Countrywide and Guaranty Bank, stating that his monthly income was $15,000, when in fact it was substantially less. In August 2007, Countrywide assumed the total line of credit from Guaranty Bank. Shortly after, Ohlsen became delinquent in his monthly payments on the original Countrywide and Guaranty loans. In May 2008 Ohlsen was in default on these loans, and in June 2008, he filed bankruptcy. Separately, Ohlsen also pleaded guilty to an illegal firearms charge. Sentencing is scheduled for August 11.