Lewis Reed, St. Louis Board of Aldermen president and member of the three-person Board of Estimate and Apportionment and former Aldermen Jeffrey Boyd and John Collins-Muhammad have been indicted on federal charges of bribery.
The government alleges that the men took “a stream of payments” and campaign donations and in return, supported tax abatement on several development projects.
The three men made their first federal court appearance Thursday afternoon, and each pleaded not guilty.
If convicted of the main indictment, Reed’s and Boyd’s charges carry maximum penalties of 10 years and five years in prison, respectively, and a $250,000 fine. Collins-Muhammad’s ‘honest services’ bribery/wire fraud charge carries a maximum penalty of 20 years in prison and a $250,000 fine…
They were ordered to surrender their passports and not converse with one another.
In a telephone call to Ray Hartmann of KTRS, shortly after his court appearance, Reed said he would “put forth a vigorous defense.”
Reed said he planned on presiding over today’s (June 3, 2022) BOA meeting, but later said in a statement that Alderman Joe Vollmer would fill in for him
On Friday afternoon, Boyd resigned his seat as the 22nd Ward Alderman.
Mayor Tishaura O. Jones said Friday in a statement that, “Jeffrey Boyd needed to go.”
“The residents of the 22nd Ward will be better served by an Alderman who is not facing federal corruption charges.”
Outside the Thomas F. Eagleton U.S. Federal Courthouse on Thursday, Reed told reporters he would not resign.
Collins-Muhammad resigned abruptly from his aldermanic seat last month. He wrote on Twitter, “The weeks ahead will be tough. I apologize to my family and to my constituents for my shortcomings and my mistakes.”
The indictment said Collins-Muhammad also received a vehicle in return for his political favor.
Reed, who serves on the BEA with Mayor Tishaura O. Jones and Comptroller Darlene Green is facing two counts for being an agent of the City of St. Louis, who allegedly corruptly accepted fee or reward for execution of an official act, vote or duty that is not due and facilitating this promotion by cell phone. Boyd is also facing counts for allegedly receiving “a stream of cash payments, free automobile repairs, and other things of value” to influence and be rewarded in connection with business transactions of the City of St. Louis and for purportedly facilitating and promoting by cell phone such unlawful activities.
The indictment was dated May 25 and was released Thursday morning. The name of the person who allegedly conspired with Reed, Boyd, and Collins-Muhammad was not released. The indictment repeatedly uses “John Doe” and “the individual.”
The U.S. Office of the Eastern District of Missouri said there would be a hearing of “public interest at 1 p.m. Thursday.
In a release, the court released the following information:
“The indictment lays out a years-long scheme in which Collins-Muhammad, and later Reed, sought to help the business owner, referred to in the indictment as ‘John Doe,’ obtain a significant property tax abatement for a new gas station and convenience store development in Collins-Muhammad’s ward. Doe estimated that the abatement could be worth $20,000 to $30,000 per year over at least 10 years, the indictment says. In all, Reed accepted $9,000 in cash from Doe, the indictment alleges. Collins-Muhammad accepted $7,000 cash, $3,000 in campaign contributions, a new iPhone 11 and a 2016 Volkswagen CC sedan in exchange for his help, the indictment alleges. Collins-Muhammad and Reed ultimately worked to pass Board Bills which provided the property tax abatement for Project A.
“During Reed’s 2021 run for mayor, Doe also gave Reed $6,000 total in cash and $3,500 in campaign contributions for Reed’s help in Doe’s ultimately unsuccessful attempt to obtain Minority Business Enterprise certification for his trucking company, and for help in winning contracts for city construction projects, the indictment alleges.
“Collins-Muhammad is also accused of accepting $3,000 after setting up a meeting with a public official who could steer business to Doe’s trucking company. Collins-Muhammad later asked for $2,500 more on behalf of the official, but instead used it to buy a 2008 Chevrolet Trailblazer, the indictment alleges.
Project B:
“A separate scheme set out in the main indictment involved Doe’s purchase of a commercial property on Geraldine Avenue in St. Louis from the City’s Land Reutilization Authority, which owns and sells vacant property. The property was in Boyd’s ward.
“Collins-Muhammad introduced Doe to Boyd so Boyd could help in the purchase, telling Doe that he would have to pay cash for Boyd’s help, the indictment says. Through Boyd’s assistance, Doe eventually was able to buy the property from the LRA for $14,000. The LRA valued it at $50,000, and Doe estimated it would have cost $250,000 if privately sold, the indictment alleges. Boyd also submitted and sponsored a board bill which provided a substantial property tax abatement for Doe’s Project B.
“Boyd accepted a total of $9,500 in cash from Doe related to Project B, and Doe also made free repairs worth $1,611 to Boyd’s 2006 Chevrolet Impala and $733 to his Kia van, the indictment alleges. Collins-Muhammad received an additional $1,000 cash for introducing Doe to Boyd.
“Boyd was indicted in a separate case on two counts of wire fraud for a scheme in which he and Doe are accused of agreeing to split the proceeds of insurance fraud related to a Jan. 17, 2021 vehicle accident at Doe’s used car lot in Jennings, Missouri.
“After Doe learned his insurance company would not cover the damage, Boyd suggested falsely claiming that three of the damaged vehicles were owned by his used car company, The Best Place Auto Sales on Dr. Martin Luther King Drive in St. Louis, the indictment alleges.
“Boyd filled out Missouri Department of Revenue bill of sale and certificate of title forms for the three vehicles, fraudulently backdating the sales dates to Jan. 2 and falsely claiming Boyd’s company had paid $22,000 for the vehicles, the indictment says. Boyd also falsely sought a $50 per vehicle, per day storage fee from Boyd’s insurance company for the damaged vehicles. Boyd’s insurance company ultimately rejected the claim.”
If convicted of the main indictment, Reed’s and Boyd’s charges carry maximum penalties of 10 years and five years in prison, respectively, and a $250,000 fine. Collins-Muhammad’s ‘honest services’ bribery/wire fraud charge carries a maximum penalty of 20 years in prison and a $250,000 fine. One of his bribery charges carries a 10-year maximum and the other has a five-year maximum. Boyd’s additional wire fraud charges related to the automobile insurance scheme carry maximum penalties of 20 years and a $250,000 fine. Restitution is also mandatory.
The indictment includes conversations between John Doe and the indicted trio.
According to the indictment, while he was running for mayor in January 2021, Reed agreed to help John Doe obtain Minority Business Enterprise status for his trucking and hauling company and obtain city contracts for the firm.
In return John Doe gave Reed $2,000 cash.
Listed in the indictment is the following conversation.
JD: Do cash rather than checks?
Reed: Yeah, that’s fine, too. That’ll work, yeah.
John Doe then withdrew $2,000 from an ATM bank machine and gave it to Reed.
JD: There you go my brother, that’s two grand.
Reed: Oh man, that’s perfect.
JD: Yes sir, yes sir.
This is a breaking story and will be updated.
