Christopher Scott Walters thought he was paying off all of hisbills. Now, he's left owing an even bigger debt to society.

The owner of Walters Holdings LLC pleaded guilty on Nov. 23 to multiple fraud charges involvinghis misuse of insurance proceeds for fire damage to an apartmentcomplex.

According to the facts filed with the court, Walters HoldingsLLC obtained a commercial loan from Citibank for $7,840,000 topurchase a St. Louis County apartment complex called Ashby Heights.On Nov. 20, 2008, Ashby Heights was damaged by fire, and Walters filed an insurance claim to coverthe damage. Citibank, however, held the lien on Ashby Heights atthe time of the fire, so any insurance proceeds had to be retainedby Citibank and disbursed as repairs were made.

In early 2009, Walters received insurance checks to cover thefire damage. Walters forged Citibank endorsements on the checks andinstead used the proceeds for paying personal debts and expenses.He made mortgage payments and purchased a 2009 Cadillac Escalade.Citibank did not become aware of the fire until September 2009,well after the insurance checks had been issued and the proceedsused up by Walters.

Walters now faces charges for two felony counts of bank fraud,two felony counts of uttering forged securities and one count ofunlawful monetary transactions before United States District JudgeAudrey Fleissig. Sentencing has been set for Tuesday, Feb. 21,2012.

The maximum penalty for these charges ranges of 10 to 30 yearsin prison and fines up to $1 million.