U.S. v. Bolstad, 92-3725
| Citation | 998 F.2d 597 |
| Decision Date | 12 July 1993 |
| Docket Number | No. 92-3725,92-3725 |
| Parties | UNITED STATES of America, Appellee, v. Frederick Charles BOLSTAD, Jr., Appellant. |
| Court | United States Courts of Appeals. United States Court of Appeals (8th Circuit) |
Virginia Villa, Minneapolis, MN, Katherian D. Roe, (on the brief), for appellant.
James E. Lackner, Minneapolis, MN, argued, for appellee.
Before RICHARD S. ARNOLD, Chief Judge, LAY, Senior Circuit Judge, and FAGG, Circuit Judge.
Frederick Charles Bolstad, Jr., appeals his jury convictions for misapplication of savings and loan funds and fraudulent participation in a loan in violation of 18 U.S.C. § 657 and § 1006. We affirm.
Bolstad was the president of Midwest Federal Mortgage Corporation (MFM), a wholly owned subsidiary of Midwest Federal Savings and Loan (MFS & L). Bolstad was responsible for originating commercial real estate loans, gathering the documentation, and presenting the documents to MFS & L for approval. Unknown to MFS & L, Bolstad was also a partner of CDR/Minnesota, a real estate development company. One of Bolstad's responsibilities for CDR/Minnesota was to obtain financing for its development projects.
In 1985, CDR/Minnesota agreed to purchase some real estate. Bolstad structured the purchase as a two-part transaction: another company, which acted on CDR/Minnesota's behalf, purchased the real estate for $1.086 million and resold it to CDR/Minnesota on the same day for $1.327 million. Both CDR/Minnesota and the other company knew the second purchase was false because CDR/Minnesota was essentially buying the real estate from itself. To finance the purchase and development of the real estate, CDR/Minnesota applied to MFM for a loan. Bolstad represented MFM on this loan and told MFS & L the real estate cost CDR/Minnesota $1.327 million. MFS & L approved a loan with terms requiring CDR/Minnesota to use the money to purchase and develop the real estate. CDR/Minnesota, however, distributed the difference between the false and actual purchase prices from the loan money among its partners and the other company as profit on the transaction.
Bolstad contends he was not sufficiently related to MFS & L to fall under § 657 or § 1006, which apply to anyone "connected in any capacity with" a savings and loan, because MFM and MFS & L's operations were separate and he did not have authority to approve the loan. We disagree. Bolstad was the president of MFS & L's wholly owned subsidiary and was responsible for preparing and presenting loan documents to MFS & L. Thus, under the broad language of § 657 and § 1006, Bolstad was clearly connected with MFS & L. See United States v. Coney, 949 F.2d 966, 967 (8th Cir.1991) (); United States v. Prater, 805 F.2d 1441, 1446 (11th Cir.1986) (); United States v. Rice, 645...
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