Friday, October 30, 2020

Associate of former St. Louis County exec Stenger sentenced in bribery scheme


A businessman who admitted to providing bribes as part of a pay-to-play scandal that led to the downfall of St. Louis County’s former top elected official was sentenced Thursday to nearly a year and a half in federal prison.

John Rallo, 54, pleaded guilty in July to three bribery counts as part of a scheme involving former Democratic St. Louis County Executive Steve Stenger, who pleaded guilty in May to corruption charges for providing political favors in exchange for campaign donations. He is serving a sentence of nearly four years in prison. Two others also pleaded guilty to federal crimes as part of the scheme.

Stenger’s activities had been under investigation for well over a year by the FBI, IRS and U.S. Postal Service before he was indicted in April. The county executive is the top elected official in St. Louis County, Missouri’s largest county with about 1 million residents.

Stenger admitting taking actions to ensure county contracts went to two Rallo-owned companies — Cardinal Insurance and Cardinal Creative Consulting — and ensuring Rallo’s Wellston Holdings LLC obtained options to buy two properties held by the county’s Land Clearance for Redevelopment Authority.

- Advertisement -

Rallo’s indictment said he gave Stenger tens of thousands of dollars in donations with the understanding his companies would get contracts.

In addition to the federal case, Rallo last year was ordered by Missouri’s securities commissioner to repay $1.2 million to six investors and pay a $30,000 civil penalty. The state said Rallo sought investors in a company he said would sell coconut powder to Costco and Sam’s Club as a food product sweetener. The state claimed Rallo largely used the investments for his other businesses.

Sheila Sweeney, the county’s former economic development agency chief, pleaded guilty last year, admitting she helped conceal Stenger’s crimes. She was sentenced to probation and fined $20,000.

Stenger’s chief of staff, Bill Miller, also pleaded guilty last year to theft of honest services through bribery and wire fraud, admitting he pressured Sweeney to renew a state lobbying contract with a company whose owner donated $59,000 to Stenger. The company and owner weren’t identified in court documents. Miller is serving a 15-month sentence.

- Advertisement -


Ukraine’s court strips critical power from anti-corruption agency

Ukraine's Constitutional Court has stripped the country’s anti-corruption agency of some of its critical powers. The high court’s ruling published on October 28 declared it...

Former South Korean President Lee Myung-bak sent back to prison for 17 years in corruption case

Former South Korean president Lee Myung-bak was ordered back to prison on Thursday (Oct 29) as the country's Supreme Court upheld a 17-year jail...

Nigerian court declines to issue international arrest warrant for fugitive ex-Petroleum Minister in corruption case

The Abuja Division of the Federal High Court, on Wednesday, refused an application by the Economic and Financial Crimes Commission, EFCC, for an arrest...

South Korea’s former Vice Justice Minister sentenced to jail for bribery and sexual favors

Former Vice Justice Minister Kim Hak-eui, the figure at the center of one of Korea’s biggest political sex scandals, was placed under pretrial detention...

Beam Suntory Inc. fined $19.6 million in foreign bribery case

Beam Suntory Inc. (Beam), a Chicago-based company that produces and sells distilled beverages, has agreed to pay a criminal monetary penalty of $19,572,885 to...

Subscribe For More

Get our daily notification on the latest financial crimes news around the World


Latest News

This Week

Former Harris County deputy constable pleads guilty to transporting drug money and heroin

A former Harris County deputy constable and her husband pleaded guilty Wednesday to charges of conspiracy to possess with intent to distribute heroin, according...

Namibia probes oil firm Acer petroleum over bribes paid to government officials

THE mines and energy ministry says it is investigating allegations that an oil company bribed some senior officials to fast-track licence applications. The senior officials...

Former solicitors used 60 fake identities, homeless people to defraud banks

A married couple who are former solicitors created 60 false identities, donned disguises and paid homeless people for their PPS numbers in order to...

Two U.S. Navy service members get prison for defrauding military insurance program

Two U.S. Navy service members were sentenced in San Diego federal court Friday for their roles in an insurance fraud scheme that involved making false medical claims to...

Adblock Detected!

Our website is made possible by displaying online advertisements to our visitors. Please consider supporting us by whitelisting our website.

Enable Notifications    Ok No thanks