Chesterfield Landlord Sentenced On Insurance Spending Fraud

A Chesterfield resident pleaded guilty to fraud when he spent insurance reimbursements on himself—when it should have gone to fire repairs on an apartment complex he bought with a Citibank loan.

was sentenced to five years probabtion and six months in a community confinement center and a year of electronic monitoring.

Walters had a $7.8 million loan with Citibank for the purchase of Ashby Heights, an apartment complex off Dorsett Road one mile east of Lindbergh Boulevard, at Midland Avenue.

Insurance payments were for a 2008 fire at Ashby Heights. Citibank did not learn about the fire until a year later.

Walters admitted to charges that involved forging Citibank endorsements on insurance refund checks, and spending the money on himself to pay off debts, and buy a Cadillac Escalade car.

The courts ordered Walters pay $236,983 in restitution.

Walters pleaded guilty in November to two felony counts of bank fraud, two felony counts of uttering forged securities and one count of unlawful monetary transactions. 

Walters was sentenced March 6 in U.S. District Courts.

Initially, Walters was indicted on an additional 17 counts of money laundering.