John Rallo, Bribery Scheme, Missouri 2019
St. Louis, MO - A local businessman has pleaded guilty to participating in a bribery scheme involving a former county executive.
John Rallo, 53, formerly of St. Louis County, pleaded guilty to three counts of Honest Services Mail Fraud/Bribery in federal court.
The scheme, which ran from October 2014 to December 31, 2018, involved former St. Louis County Executive Steve Stenger and former CEO of the St. Louis Economic Development Partnership, Sheila Sweeney.
According to court documents, Stenger used his official position to enrich himself by soliciting and accepting campaign contributions from Rallo and other individuals in exchange for favorable official action in the awarding of contracts and grants.
The scheme involved Rallo's companies, Cardinal Insurance, Cardinal Creative Consulting, and Wellston Holdings, LLC, obtaining contracts and land deals through St. Louis County and the St. Louis Economic Development Partnership.
Rallo faces a maximum penalty of 20 years in prison and a $250,000 fine for each count. Restitution is also mandatory.
The Federal Bureau of Investigation and the Postal Inspection Service are investigating the case with the assistance of the Internal Revenue Service Criminal Investigations.
Assistant U.S. Attorney Hal Goldsmith is handling the case for the U.S. Attorney's Office.
Rallo's sentencing is set for October 15, 2019.
Key Facts
- State: Missouri
- Category: Public Corruption
- Source: DOJ Press Release â†â€â€
ðŸâ€Â’ Get the grimiest stories delivered weekly. Subscribe free →