William E. McKanry, his son, William C. McKanry, and mortgage broker Paula Enders,, each face a maximum penalty of five years in prison

William E. McKanry, 68, of Warrenton, his son, William C. McKanry, 42, of St. Albans, and mortgage broker Paula Enders, 36, of Florissant, each face a maximum penalty of five years in prison and/or fines up to $250,000 for each count of bank fraud and 20 years in prison and/or fines up to $1 million for each count of mail and wire fraud, according to U.S. Attorney Catherine Hanaway.Between December 2005 and January 31, 2006, the McKanrys’ sold 12 real estate properties through Enders, according to the indictment. The properties are located in Florissant, St. Charles, O’Fallon, Hazelwood, Lake St. Louis, Ballwin, St. Louis City and County, and the total sale price of the properties was $2.7 million.Enders would shop on-line to obtain mortgage financing for all of the 12 properties, prosecutors said. On the loan applications for these properties Enders falsified that the source of the down payments, settlement charges and subordinate finances were to be made by the buyer of these properties, when they were actually made by the McKanrys, prosecutors said.
The indictment states that at the closings, Enders received $226,000 above her commission fees as the mortgage broker to buy Foundation Mortgage Inc. On the seller’s settlement statement these monies were falsely represented to be construction rehab costs on the particular properties, prosecutors said. Money would be going to Enders at the closings as construction rehab on these properties when they actually were to be used to purchase Foundation Mortgage.Since the closing on the 12 properties at William C. McKanry’s USA Title, 11 out of 12 properties ended up in foreclosure and were resold for $1.2 million for a loss of $1.5 million, prosecutors said.USA Properties, which William C. McKanry and his father, William E. McKanry operated, provided a list of their "for sale" properties to area brokers and real estate agents. The list identified the particular property address and corresponding "retail value" and "sale price,” according to the indictment.In order to sell the properties, USA Properties was willing to sell these properties below the purported appraised value to buyers, prosecutors said.“This market of favorably priced real estate to which Enders, William C. McKanry and William E. McKanry had access provided an opportunity,” according to the U.S. Attorney’s office. “By matching USA Properties with buyers, they exploited the difference between what USA Properties was willing to take for a property ‘sale price’ and what a prospective investor, induced by special deals, was willing to pay.”