Former Ramapo Town Supervisor Christopher St. Lawrence has been found guilty of 20 counts of conspiracy, securities fraud, and wire fraud in connection with municipal bonds issued by the Town of Ramapo and the Ramapo Local Development Corporation.
The verdict, which came after a four-week trial in federal court in White Plains, marks the first conviction for securities fraud in connection with municipal bonds. The $3.7 trillion municipal bond market is of critical importance to both investors and municipalities that rely on this market.
According to the allegations, as of August 2015, the Town had more than $128 million in outstanding bonds that had been issued for various municipal purposes, while the RLDC had issued $25 million in bonds to pay for the construction of Provident Bank Park, a minor league baseball stadium in Ramapo. The Town’s financial problems were caused largely by the $58 million total cost of the stadium.
St. Lawrence lied to investors in the Town’s and RLDC’s bonds in order to conceal the deteriorating state of the Town’s finances and the inability of the RLDC to make scheduled payments of principal and interest to holders of its bonds from its own money. He made up false assets in the Town’s General Fund, including a false $3.6 million receivable in 2011 and another fake receivable for $3.08 million from 2010 through 2015.
The integrity of the municipal bond market is of critical importance to both investors and municipalities that rely on this market. The verdict in this case of public corruption and securities fraud stands as a victory for both honest government and fair financial markets.
Acting U.S. Attorney Joon H. Kim said, ‘As the jury found today after trial, Christopher St. Lawrence lied repeatedly to the investing public about the state of Ramapo’s finances.’ The verdict marks the first conviction for securities fraud in connection with municipal bonds.
Defendant: Christopher St. Lawrence
Criminal Charges: 20 counts of conspiracy, securities fraud, and wire fraud
City and State: White Plains, New York
Date: The trial lasted for four weeks
Sentence: Guilty verdict after a four-week trial
Dollar amounts: $3.7 trillion (municipal bond market), $128 million (Town’s outstanding bonds), $25 million (RLDC’s bonds), $58 million (stadium’s total cost), $3.6 million (false receivable), $3.08 million (fake receivable)
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Key Facts
- State: New York
- Category: Public Corruption|White Collar Crime
- Source: DOJ Press Release â†â€â€
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