Steve Stenger, the former St. Louis County executive, pleaded guilty in front of U.S. District Court Judge Catherine D. Perry on Friday, May 3 on three counts of theft of honest services, bribery and mail fraud.
His sentencing hearing is set for August 9, which will mark five years to the day that Michael Brown was shot and killed by a then-Ferguson Police officer – igniting a national movement to address inequities and corruption.
Among his crimes was orchestrating a “sham” consulting contract of $130,000 to improve the county’s image after the Ferguson unrest – to which the contractor, his political donor, did no work, the federal investigation found and Stenger admitted.
For Stenger’s crimes, the maximum possible penalty is not more than 20 years in prison, a fine of not more than $250,000 or both jail time and a fine.
The guilty plea is the result of a federal investigation that began during March 2018 and remains active and ongoing. The investigation was conducted by the U.S. Attorney’s Office, Federal Bureau of Investigation and the Postal Inspection Service, with the assistance of the Internal Revenue Service Criminal Investigations.
“The events of this week – including the unsealing of the grand jury’s indictment, the resignation of the defendant as St. Louis County executive, and today the defendant’s guilty plea to all charges in the indictment – should send a message that the Department of Justice and federal law enforcement will not tolerate public corruption at any level of government,” said Executive Assistant U.S. Attorney Reginald Harris.
According to court documents, beginning in October 2014 and continuing through December 31, 2018, Stenger and various individuals and companies participated in five schemes to defraud St. Louis County citizens.
“It was a pay-to-play scheme that involved bribes, paid through political donations in exchange for his official acts in directing others to award contracts – either through St. Louis County or the St. Louis Economic Development Partnership,” said Hal Goldsmith, assistant U.S. Attorney.
In four different schemes, Stenger, in exchange for campaign donations and several fundraising events, took official action to ensure that John Rallo and his companies got grants or contracts through St. Louis County. Those included insurance contracts and a sham consulting contract for post-Ferguson public relations .
Rallo and his other company, Cardinal Creative Consulting, obtained a $130,000 consulting contract through the St. Louis County Port Authority in 2016. The indictment documents a conversation between Stenger and Chief of Policy Jeff Wagener, where Stenger talks about the consulting contract being “PR rehab for the county” after the Ferguson unrest. Former talk show host and television personality Montel Williams was to be the spokesman.
The indictment alleges and Stenger admitted that “Rallo and Cardinal Consulting did no actual work under the consulting agreement.”
Rallo allegedly made up falsified information during his monthly reports to the Port Authority’s board. The indictment also claims two other “trustees” were paid out of the contract, even though they also did no work.
Stenger also pled guilty to ensuring that John Rallo and his company, Wellston Holdings, LLC, obtained options to purchase two properties in Wellston, Missouri which were held by the Land Clearance for Redevelopment Authority of St. Louis County during 2016 and 2017. Rallo’s partner on this deal was also a “trustee.” The indictment reports conversations between Rallo and Sheila Sweeney, the chief executive of the St. Louis Economic Partnership, where she allegedly advised Rallo on how to win the bid on a Wellston property – including the amount to bid in order to beat out his competition.
Stenger took steps to hide, conceal and cover up his illegal conduct and actions, including making false public statements, the plea agreement states and Stenger admitted.
“Steve Stenger benefitted himself at the expense of St. Louis County citizens by accepting financial gain in exchange for official action,” said Richard Quinn, special agent in charge of the FBI St. Louis Division.
“The FBI will continue to investigate and hold accountable public officials who betray the trust of the St. Louis communities they serve. Our citizens deserve nothing less.”
