KANSAS CITY, Mo. – A Kansas City, Mo., man who defrauded a local financial institution of $652,784.34 in funds was sentenced in federal court today for bank fraud and money laundering.
Maximillian D. Howell, 44, was sentenced by U.S. District Judge Brian C. Wimes to a total of 21 months in federal prison without parole. The court also ordered Howell to pay restitution of $231,841.84 to the financial institution. In addition, the court entered a final order of money judgment forfeiture of $88,123.08.
Beginning in 2015, Howell, through several of his companies, worked on numerous development projects within the City of Kansas City, Missouri. These projects were often funded through the HOME grant and CDBG. These grants were awarded to the City of Kansas City, Missouri by HUD. Other projects were funded from reimbursement-based lines of credit established at the financial institution and the General Fund of the City of Kansas City, Missouri.
To facilitate his acquisition of land to develop residential properties for sale, Howell obtained lines of credit with the financial institution, a Missouri state-chartered banking association, having an office in Kansas City, Missouri.
As the projects were under construction, the financial institution, which had promised Howell construction loans, would periodically lend Howell money based on his line of credit or the overall amount of his construction loans. These periodic loans are typically referred to as construction draws.
Howell was to draw construction loan proceeds by submitting certified draw requests, signed by him, which contained statements describing the work completed and the amount owed for that work. Howell submitted or caused to be submitted numerous such draw requests to the financial institution.
It was a part of the scheme and artifice to defraud that Howell would enter into and maintain loan agreements with the financial institution for funding five real estate development projects, to wit: Second and Delaware, 1220 Beacon Hill Lane, 2101 Garfield Avenue, 2645 Madison Avenue, and 2709 Holmes Street (collectively referred to as the “Development Projects”).
Howell, doing business through his companies, executed and presented false and fraudulent draw requests to the financial institution, predicated in whole or in part upon false claims of incurred costs, for disbursement of funds in support of the Development Projects.
Howell caused to be created false and fraudulent documentation of expenses supposedly incurred upon the Development Projects, totaling $652,784.34, paid by the financial institution to Howell.
The court ordered Howell to self-surrender on May 27, 2025.
This case is being prosecuted by Assistant U.S. Attorney Rudolph R. Rhodes IV. It was investigated by the U.S. Department of Housing and Urban Development, Office of the Inspector General.