Bois D’Arc businessman sentenced for bank fraud

A Bois D’Arc business owner was sentenced today for bank fraud related to the construction of his $1.6 million home.

Michael Ussery, 58, who in 2007 owned real estate property development companies U.S.S. Properties Inc. and Villa Properties LLC, was sentenced to two years in federal prison without parole. He’s also required to pay $1.3 million in restitution to Mid-Missouri Bank, according to a news release from the office of Tammy Dickinson, U.S. attorney for the Western District of Missouri.

The sentence follows an October trial conviction that found Ussery guilty of 12 counts of bank fraud.

To finance his home, Ussery took out a $1.6 million loan with Mid-Missouri Bank to pay off $1.15 million from a previous bank that funded construction up to that point. The remaining $450,000 was supposed to be used to complete the job, according to the release.

However, the funding was not used for its intended purpose.

From May 29, 2007, to June 25, 2007, a dozen invoices and lien waivers totaling $315,417 were submitted to Mid-Missouri Bank purportedly from individuals or companies working on the residence, allowing money to be drawn from the $1.6 million loan amount. The federal court in Springfield determined those invoices and waivers were fraudulent, created by or for Ussery.

The fraudulent activity was discovered when bank auditors visited the construction site in June and July 2007 and found no evidence of the reported construction work, according to the release.

The money actually was deposited into the accounts of U.S.S. Properties and Villa Properties, which were experiencing financial stress and eventually each filed for bankruptcy.

After Ussery stopped construction on his home, Mid-Missouri Bank took a $782,349 loss from the sale of the partially finished property. It also paid $103,257 to settle mechanic liens placed on the residence by contractors, according to the release.

While not charged in the indictment, evidence introduced at trial indicated Ussery committed similar fraudulent activity against a husband and wife who hired him to build a residence in Greene County.