© 2024 University of Missouri - KBIA
Play Live Radio
Next Up:
0:00
0:00
0:00 0:00
Available On Air Stations

Indicted St. Louis County Businessman Faces More Trouble

A businessman already accused of bribery as part of former St. Louis County Executive Steve Stenger's pay-to-play scheme is facing fraud accusations from a state agency.

The Missouri Secretary of State's office said Monday that its securities division has issued a cease-and-desist order against John Rallo, accusing him of defrauding six investors out of $1.3 million. Five of the investors are from the St. Louis area, and one is from Utah.

Rallo's attorney, John Rogers, didn't immediately respond to a phone message seeking comment. Rallo does not have a published phone listing.

Stenger, a Democrat, pleaded guilty on May 3 to federal charges for directing county contracts to campaign donors. The indictment cited businesses operated by Rallo, who was indicted last week. He pleaded not guilty on Friday.

The Associated Press is one of the largest and most trusted sources of independent newsgathering, supplying a steady stream of news to its members, international subscribers and commercial customers. AP is neither privately owned nor government-funded; instead, it's a not-for-profit news cooperative owned by its American newspaper and broadcast members.