“The chief financial officer of the developer that led construction on long-stalled Kenwood Towne Place is facing a charge of conspiracy to commit bank fraud.
A federal grand jury in Cincinnati indicted Bear Creek Capital’s Tina Schmidt on Thursday, charging her with diverting money from the high-profile Sycamore Township development to pay outstanding debts and enrich others.
This is the first criminal charge out of the most complex foreclosure case in Hamilton County history. Parties have claimed throughout the case that fraudulent activities led to the shocking demise of the most promising new retail and office development in the region.
Contractors walked off the construction site late in 2008 after they hadn’t been paid for their work. Bank of America filed foreclosure in May 2009, claiming an $81 million default on the construction loan. Developers, contractors and investors have spent more than three years in court passing blame for the project’s cost over-runs and attempting to collect the money owed and invested.
Also in August, a group of subcontractors dropped similar fraud claims against Bank of America. Still remaining are charges of fraud by contractors and Kenwood Towne Place investors against Bear Creek Capital partner Matt Daniels and construction manager Audie Tarpley.”