Man accused of wire fraud pleads guilty

On behalf of The Marks Law Firm, L.L.C. posted in Fraud on Thursday, November 3, 2011

White collar crime has received more than its fair share of media attention recently, perhaps another sign of the bad economic times. Nevertheless, an allegation of criminal conduct on the federal level is a serious matter. The accused person may have to serve a term of incarceration, they may face heavy financial penalties and may have a period of supervision after release from prison. Add to that the very real prospect of publicity, and an individual facing charges is indeed facing an uphill battle.

An 80-year-old Clayton, Missouri real estate developer pleaded guilty on Oct. 27 in federal court to seven counts of wire fraud. He admitted to paying cash bribes to a former East St. Louis development director. The payments resulted in his receiving better treatment for a failed affordable housing development project in the city.

The man allegedly used phony documents to obtain bank loans for the $5.6 million project. He also submitted fake invoices and waivers to the city and another agency that oversees the city’s expenses, all for the purpose of receiving payment for work he had never completed.

The former East St. Louis development director who received the bribes also pleaded guilty to related crimes in May. He will be sentenced on Nov. 8. The elderly developer will be sentenced early next year.

Because of the substantial consequences for a federal criminal conviction, those facing investigations or formally accused of crimes may benefit from consulting with an attorney experienced in the defense of white collar crimes. That attorney may be able to determine the best course of action for the specific situation.

Source: WREX News, “Mo. businessman pleads guilty in development fraud,” Oct. 30, 2011

 

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