Three Missouri businessmen accused of defrauding Excel Bank, which later failed, were arraigned in federal court in St. Louis on Friday.

William Glasgow, James Crews and Michael Hilbert each face two felony counts of bank fraud, according to a press release Monday from the Special Inspector General for the Troubled Asset Relief Program. Sigtarp is involved in the case because Excel, which was based in Sedalia, Mo., received $4 million from the Treasury Department in May 2009. Regulators closed the bank in October 2012; it had assets of about $200 million.

Glasgow, 72, owned the real estate business Glasgow Realty. He is accused of submitting false information about his rental properties to Excel in order to take out nearly $2 million in loans in 2009, according to the indictment. Glasgow defaulted on both loans.

A separate indictment charges real estate business owners Crews, 56, and Hilbert, 62, with submitting fraudulent information to Excel in order to "draw requests for hundreds of thousands of dollars in escrow funds set aside for improvements to [rental] properties" in 2010, according to the release. Their businesses operated under several names, including Crews Corp., Hillcrew Properties, Merz Properties, Eagle Group and Marathon RE.

"When Excel Bank failed, taxpayers lost their entire $4 million Tarp investment in the bank and more than $900,000 in past-due dividends," Christy Romero, the Tarp special IG, said in the release. "Defrauding a Tarp bank is defrauding the federal taxpayers who funded the Tarp bailout. "

Each count of bank fraud carries a maximum penalty of 30 years in prison and a fine of up to $1 million.

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