ST. LOUIS – A man on Thursday admitted conspiring to steal at least 14 properties in St. Louis and St. Louis County by filing fraudulent deeds.
James L. Townes Jr., 51, of Berkeley, pleaded guilty in U.S. District Court in St. Louis to a conspiracy charge. Townes admitted that beginning as early as Sept. 25, 2018, he began filing fraudulent deeds in St. Louis and St. Louis County on properties that belonged to others. The filings falsely claimed that Townes or his relatives had purchased the properties. Townes and his co-defendant, Charnay Bartlett, used fraudulently obtained notary seals to “authenticate” the forged signatures of the true owners of the properties.
Townes and Bartlett transferred at least 14 properties to Townes, his companies or his friends and family, his plea agreement says. Townes admitted that his scheme involved the use of the names of 10 or more individuals and…
Investment fraud targets the human desire for financial growth by promising high returns with “low to no risk.”
- Ponzi Schemes: Named after Charles Ponzi, these schemes pay “returns” to earlier investors using the capital brought in by newer investors. There is no actual underlying business; the system collapses when new recruitment slows down.
- Pyramid Schemes: Similar to Ponzi schemes, but participants are usually required to sell a product or service. The primary “profit” comes from the recruitment fees of new members rather than actual product sales.
- Pump and Dump: Fraudsters spread false, positive rumors about a cheap stock (the “pump”) to drive up the price. Once the price peaks, they sell their shares (the “dump”), leaving other investors with worthless stock.