ST. LOUIS, MO (KTVI) – A local man has been sentenced to twenty-four months in federal prison after pleading guilty to conspiracy. In 2008, Jason Rauschelbach, 43, of O’Fallon Missouri, conspired to defraud the United States and a number of banks using his business, The Mortgage Store, Inc. The sentenced was imposed Monday and he has also been ordered to pay restitution.
Rauschelbach was the CEO of The Mortgage Company and the president of Title America. According to the United States Attorneys Office of the Eastern Missouri District, TMS was a major mortgage brokering business in 2008, with offices located in four states and hundreds of employees. The main offices were housed in Westport Plaza and Wentzville.
Once the business began operating at a financial deficit, it incurred more than $600,000 in federal employment tax liabilities that were not paid.
His guilty plea also included submitting false net worth statements to HUD and avoiding to pay more than $31,000 in employees withholdings for 401K and health insurance plans.
Restitution payments are set to reimburse those employees.