FORMER MISSOURI EXECUTIVE EXTRADITED FROM ISRAEL TO FACE FEDERAL FRAUD CHARGES IN ALLEGED $28 MILLION APARTMENT LOAN SCHEME

ST. LOUIS — A former Missouri business executive indicted nearly six years ago has been extradited from Israel to the United States to face federal bank and wire fraud charges tied to an alleged multi-million-dollar scheme involving apartment complexes in Missouri and Oklahoma.

Michael Fein, 47, arrived in the United States on Thursday after Israeli authorities approved his extradition following years of international legal proceedings. Federal authorities allege Fein orchestrated a fraud scheme that involved submitting false financial information to obtain and refinance millions of dollars in commercial real estate loans.

According to the indictment, Fein co-owned T.E.H. Management and affiliated companies that owned and managed numerous multi-family apartment complexes throughout the United States. Prosecutors allege he was responsible for the company’s day-to-day operations and routinely submitted false loan documents to financial institutions between 2016 and 2019.

The indictment alleges Fein knowingly inflated occupancy rates, rental income, budgets, and financial statements in loan applications involving several apartment complexes in Missouri and Oklahoma.

According to federal prosecutors, one alleged scheme involved the 168-unit Pinnacle Ridge Apartments in St. Louis County, where Fein allegedly submitted false occupancy, income, and budget information to obtain approximately $2.8 million in financing.

The indictment also alleges Fein fraudulently refinanced the 304-unit Green Village Townhomes in Kansas City by overstating occupancy from approximately 50 percent to nearly 89 percent while inflating rental income. Prosecutors allege that after the $12.5 million refinancing closed, a T.E.H. affiliate received approximately $6 million.

Federal prosecutors further allege Fein submitted fraudulent loan documents involving the 260-unit Ivy Place Apartments in Tulsa, Oklahoma. According to the indictment, occupancy was allegedly overstated from approximately 66.5 percent to more than 96 percent while income statements were also allegedly inflated. Following the $7.7 million refinancing, prosecutors allege a T.E.H. affiliate received nearly $978,000.

The indictment also accuses Fein of attempting to obtain approximately $5.2 million in financing to purchase the 208-unit Hanley Crossings apartment complex in St. Louis County in 2019. Prosecutors allege the application contained false financial information involving 26 apartment complexes owned by T.E.H. and its affiliates, including occupancy figures allegedly overstated by approximately 18 percent. The loan application was ultimately denied.

Federal prosecutors are seeking forfeiture of at least $23 million they allege represents proceeds obtained through the fraud scheme.

The case extends beyond financial fraud allegations. During March 2020, following numerous tenant complaints regarding unsafe and substandard living conditions at several T.E.H.-managed apartment complexes, the federal government suspended taxpayer-funded housing contracts and federal housing assistance connected to company affiliates operating in the St. Louis and Kansas City areas.

Because many residents depended on federally subsidized housing assistance, government agencies issued housing transfer vouchers to help affected tenants relocate to safer living conditions.

After Fein’s indictment was returned in August 2020, U.S. authorities eventually located him in Israel and initiated formal extradition proceedings. On May 14, Israeli officials approved his extradition to the United States. Fein arrived at John F. Kennedy International Airport before being transported to St. Louis, where he is expected to make his initial appearance in federal court.

Because this case remains pending, the indictment contains allegations only. Fein is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

The investigation was conducted by the Federal Housing Finance Agency Office of Inspector General, the U.S. Department of Housing and Urban Development Office of Inspector General, and the Federal Bureau of Investigation. Assistance in securing Fein’s extradition was provided by Israeli authorities, the Department of Justice’s Office of International Affairs, and the United States Marshals Service.

Assistant United States Attorney Hal Goldsmith is prosecuting the case.

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