St. Charles Developer Pleads Guilty to Fraud

On Thursday, a St. Charles developer admitted to defrauding a bank, according to a news release from the U.S. Attorney’s Office.

James Summers, 40, of St. Charles, pleaded guilty to three fraud charges involving his Cool Springs development in St. Charles County.

Summers, who owned and operated Quality Building Systems and D & M Properties, developed commercial real estate in St. Charles County. 

In December 2007 and June 2008, Summers obtained $450,000 and a $750,000 loans from 1st Advantage Bank to buy three lots in St. Charles County. He was supposed to construct a commercial building on one of the lots as part of the Cool Springs project. 

Construction funds remained with 1st Advantage Bank to be disbursed for completed work. In 2008, Summers submitted fake invoices so that 1st Advantage would release the construction fund. He admitted depositing the funds. Of the total funds, $400,000 went for his personal use. No construction work was completed and the lot remains mostly undeveloped. 

U.S. District Judge Audrey G. Fleissig set sentencing for June 16. Each count of bank fraud carries a maximum penalty of 30 years in prison and fines up to $1 million.