St. Louis, MO – Samuel Glasser, owner of Samuel & Company LLC and Mambo Development LLC, avoided prison time but was sentenced to probation and ordered to pay restitution after admitting to defrauding Montgomery Bank in 2011. The scheme involved inflating invoices related to a building renovation project, resulting in a significant financial loss for the bank.
According to court documents, Mambo Development secured a loan to purchase and rehabilitate the Ford Building, located at 1405 Pine Street in St. Louis. Glasser, through Samuel & Company LLC, was contracted to perform the interior demolition, including the crucial and regulated work of lead and asbestos abatement, for an agreed-upon price of $378,000. However, the project’s cost mysteriously escalated after a fraudulent agreement was made to submit inflated bills to Montgomery Bank.
The fabricated invoices presented to the bank ultimately totaled $578,000 – a $200,000 increase over the original contract. Glasser then allegedly executed a kickback scheme, receiving over $133,000 from the inflated funds. This deliberate manipulation of financial records constituted a clear violation of federal banking laws, prompting a criminal investigation by the Environmental Protection Agency’s (EPA) criminal enforcement program, alongside the Department of Justice.
Legal Ramifications
Glasser was initially charged on May 26, 2010, with bank fraud, a violation of Title 18 U.S. Criminal Code, specifically 18 U.S.C. 1344. This statute criminalizes schemes to defraud financial institutions. A guilty plea was entered on February 25, 2011. While facing a potential prison sentence, Glasser received a sentence of 36 months of probation on June 24, 2011. In addition to probation, the court ordered Glasser to pay $133,332 in restitution to Montgomery Bank to cover the losses incurred due to his fraudulent activities. The relatively lenient sentence raises questions about sentencing trends for white-collar crimes of this nature.
The Role of Environmental Regulations
While the core crime was bank fraud, the case is notable for its connection to environmental remediation work. The demolition contract explicitly included lead and asbestos abatement, highly regulated processes designed to protect public health. The inflated costs, while fraudulent in their intent, were tied to work intended to comply with environmental standards. This highlights the potential for fraud to infiltrate even seemingly legitimate environmental projects.
Key Facts
- Defendant: Samuel Glasser, owner of Samuel & Company LLC and Mambo Development LLC
- Location: St. Louis, Missouri
- Year: 2011
- Crime: Bank Fraud
- Statute Violated: 18 U.S.C. 1344
- Restitution Ordered: $133,332 to Montgomery Bank
- Sentence: 36 months probation
- Inflated Invoice Amount: $200,000 (from $378,000 to $578,000)
GrimyTimes will continue to follow developments in white-collar crime cases and investigate potential patterns of fraud in environmental remediation projects.
Source: EPA ECHO Enforcement Case Database
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