Prosecutors have confirmed extradition proceedings have started against a notorious St. Louis-area landlord over claims he masterminded a $28 million fraud linked to the purchase of properties.
Michael Fein, 41, was indicted last month on charges for allegedly falsely inflating occupancy numbers at the apartment complexes in St. Louis, Kansas City and Tulsa, Oklahoma. He is believed to be in Israel.
Fein and a related company are also liable for $52 million in damages over what a judge described as "appalling" conditions at an apartment complex in Kansas City. It is believed to be the largest ever damages award against a Missouri landlord.
But Fein, a representative for Israel-based investors that went on a buying spree across St. Louis in recent years, did not turn up at any of the Kansas City court hearings, prompting huge contempt fines that eventually reached $7,500 a day.
Tenants testified about living with mold, roach infestation, rats, raw sewage, lack of heat and air conditioning, unsecured doors, overflowing trash bins, exposed electrical wiring and collapsed apartment ceilings.
“These defendants are despicable. They had a scheme that is still operating statewide that was offensive to the court,” Gregory Leyh, the tenants’ lawyer, told KCUR news station.
Prosecutors believe he is in Israel and have begun extradition proceedings.
"This Office is currently seeking review and approval through Department of Justice, Office of International Affairs to request formal extradition of Michael Fein from Israel per Department of Justice policies," Hal Goldsmith, Assistant U.S. Attorney for the Eastern District of Missouri, confirmed to the St. Louis Record.
Following the announcement of the grand jury indictment, Fein, in a telephone interview with the St. Louis Post Dispatch, revealed he had not been in the US for six months since the onset of the COVID-19 pandemic.
"I have no idea what they are talking about, so I don't know how to comment," he said. "I am hearing about this for the first time."
According to the federal indictment, Fein allegedly "devised, intended to devise, and knowingly participated in a scheme to defraud and obtain money from financial institutions."
Those defrauded, it is alleged, including Freddie Mac and Fannie Mae, to which he made "materially false and fraudulent pretenses, representations, and promises."
At the center of the investigation in St. Louis is the Pinnacle Ridge Apartments, a 168 unit multi-family apartment complex located on Lookaway Drive in St. Louis County.
It is alleged Fein sent information to lenders claiming the complex was nearly 95 percent full when just over half the units were occupied.