Kirkwood Man Indicted in $1 Million Construction Scheme
Douglas Dalton faces five felony counts of bank fraud and one felony count of wire fraud related to the alleged misuse of a commercial loan for a St. Louis area daycare facility.
The following statement was released Monday by the United States Attorney's Office for the Eastern District of Missouri.
Gary Salant and Douglas Dalton were indicted on multiple fraud charges involving their alleged misuse of a $1 million commercial loan for a St. Louis area daycare facility.
According to the indictment, Gary Salant and his business partner Douglas Dalton engaged in a real estate project known as the Mary Margaret Day Care, later known as Little Treasures’ Day Care and Learning Center, located at 2201 North Florissant, St. Louis.
They were to construct two buildings. Salant obtained a $1.395 million loan in 2008 for the construction of the property and used that property as collateral for the loan. The indictment alleges that from November 2008 through July 2010, Salant made a series of draw requests totaling the full $1.395 million of the loan. The indictment states that a second loan for $226,000 was obtained from Midland States Bank in 2009 for furniture and fixtures for use in the day care center.
Douglas Dalton created a fictiticious company called Kemp Sales Group, LLC in December 2009 to create invoices to present to Midland States Bank for draws on this loan. Salant and Dalton did not complete construction of the two buildings, and have failed to open Little Treasures’s Day Care and Learning Center.
The indictment alleges that they diverted approximately $90,000 of the construction money for other purposes, and diverted approximately $155,000 of the furniture and fixture money. None of the funds were used to purchase anything associated with the loan.
Salant, 61, St. Louis, 63104, was indicted by a federal grand jury on five felony counts of bank fraud; Dalton, 53, Kirkwood, MO, was indicted on five felony counts of bank fraud and one felony count of wire fraud. The indictment was returned June 21st, but remained sealed until their appearance in federal court Monday.
If convicted, each count of bank and wire fraud carries a maximum penalty of 30 years in prison and/or fines up to $1 million. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Federal Bureau of Investigation. First Assistant United States Attorney Michael Reap and Assistant United States Attorney Anthony Franks are handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.