It was as though Assistant U.S. Attorney Hal Goldsmith was personally chiseling the epitaph on the gravestone of Steve Stenger’s political career.
Goldsmith stood before Senior U.S. District Judge E. Richard Webber on Tuesday afternoon as former St. Louis businessman John G. Rallo pleaded guilty to three felony fraud charges related to a scheme by which he gave campaign donations to Stenger, the former St. Louis County executive, in order to obtain government contracts.
These are the words Goldsmith used to describe the scheme orchestrated by the two men, who still await sentencing for their crimes:
Bribery. Corrupt. Cover up. Fraud. Theft. Sham. Pay-to-play.
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It all started with a steak dinner. There’s irony in that.
For at least as long as Stenger has been in politics, there have been debates in Missouri, mostly at the state legislative level, about limiting the ability of elected officials to receive gifts from lobbyists and others. For as long as I’ve been reporting on this issue, the response from most politicians who opposed limits on such gifts, including free meals, was some version of this: “I can’t be bought for the price of a steak dinner.â€
Perhaps not. But what about a steak dinner plus $5,000?
According to Rallo’s plea agreement, that’s what he gave Stenger that night in 2014 at Sam’s Steakhouse. Rallo had conditions.
“During that dinner, Rallo told Stenger that he was tired of giving money to politicians and not getting anything in return,†Goldsmith wrote in the plea agreement, which cites the facts of the case.
Truth be told, Rallo’s sentiment is hardly unheard of in politics.
Nearly every businessman who gives money to a politician expects something in return, even if it goes unsaid: access, a phone call, some vague consideration on future matters.
Take Sam Hamra. In 2006, the Springfield businessman wrote then Gov. Matt Blunt an angry letter. Hamra, who invests in low-income housing tax credits, was unhappy that his company wasn’t getting what he thought was his fair share of the credits, doled out annually by the Missouri Housing Development Commission. In his letter to the governor, Hamra pointed out that he had been a generous campaign donor.
To his credit, Blunt dismissed Hamra’s letter.
I wrote about the incident. Some time later, Hamra, who also owns fast-food franchises, sent me a letter that included two coupons to Wendy’s. This is just the way he believed business was done in America. He’s hardly alone.
In fact, Stenger learned that lesson early in his career.
It was 2009 and he was a member of the County Council representing south St. Louis County. A gaming company was seeking rezoning for property in North County for a proposed casino. The biggest St. Louis casino operator, Pinnacle Entertainment Inc., opposed the rezoning. Significantly, Pinnacle operated the River City Casino in Stenger’s district.
CEO Dan Lee flew in from Las Vegas for the meeting. Lee met personally with Stenger to lobby him to oppose granting a rezoning that would benefit the casino’s competitor.
Stenger voted for the North County casino rezoning.
Lee went ballistic.
He very publicly went up to Stenger’s assistant near the council dais and told her that Stenger “just made the worst mistake of his political career. I won’t forget this.â€
Shortly thereafter, Lee resigned. An investigation by the Missouri Gaming Commission ended with no discipline of the former CEO.
Here’s how Lee’s attorney, Jim Deutsch, characterized what happened at the time:
“Not all inappropriate behavior is a violation of statutes or regulations,†Deutsch said, “and they’re not authorized to punish bad ideas or bad behavior.â€
Rallo, Stenger and others aren’t being punished for bad behavior, but for breaking the law in awarding a “sham†contract from the St. Louis Port Authority to a consulting company Rallo set up to help complete the “bribery scheme.â€
Most of the Port Authority’s money comes from the casino that Lee used to run.
Revenge, they say, is best served cold.
St. Louis County Executive Steve Stenger's fall: Some background reading
Here's a collection of Post-Dispatch stories looking at some of the controversies surrounding former St. Louis County Executive Steve Stenger.
The Democrat who sits atop the county government apparatus has figured out a basic rule of survivability in politics: Take care of your friends.
Two members of the investment group, John G. Rallo and Corey Christanell, have given more than $30,000 to St. Louis County Executive Steve Ste…
On Nov. 3, the Post-Dispatch asked record custodians from Stenger’s office and from the county’s Department of Human Services to provide all r…
The contract language approved by the board said the contract was not to exceed $100,000. But the contract Sweeney actually signed a few weeks…
The owners of the former Northwest Plaza in St. Ann have donated $365,000 to St. Louis County Executive Steve Stenger, who was campaigning for…
Two of the top officers with the Missourians for Patient Care initiative (which failed in November 2018) have received lucrative land deals or…
“The bottom line is that any claim that this is a cost-savings measure for the County would appear to be quite inaccurate,†Ted Medler, the co…
Stenger’s former campaign manager, working as a special project manager, directed an effort that started in 2015 to relocate several county of…
The lease will cost taxpayers at least $69 million, and could run as high as $77 million, according to the newspaper’s analysis of the county’…
In a text, Stenger called the council’s action a “political rampage†orchestrated by councilman Ernie Trakas, R-6th District.
Stenger’s office arranged for the port authority to pay for the nonprofit to hire marketing consultant Steven Wyatt Earp, said Reginald Scott,…
Stenger said in an interview Wednesday that the county council and he “really don’t have much choice but to work with each other.â€
Wellston Holdings LLC wants to sell the 28-acre site on Ogden Avenue to Copart, an online vehicle auction and resale company based in Dallas. …
Coleman is helping the council-backed board try to take the port authority and its casino cash away from the St. Louis Economic Development Pa…
After selling 28 acres of Wellston land to politically connected investors last year, the St. Louis County Land Clearance for Redevelopment Au…
Stenger has repeatedly denied any involvement in the 2017 sale of two publicly owned Wellston industrial parks to investors who also have dona…
Sweeney’s board released a statement saying it was “deeply concerned†about issues at the Partnership, and it sent a message to the county cou…
Page said the subpoena ordered the county to produce Stenger’s call history, texts and emails with current and former county employees related…
The chairman of the St. Louis Economic Development Partnership said the agency and the county Port Authority and Land Clearance for Redevelopm…
All three were hired to county jobs shortly after Stenger took office on Jan. 1, 2015.
Prominent defense attorney Ed Dowd also sought county council support for resolution allowing county to hire him.
It also seeks records of communications between Stenger — or any current or former county official or employee — and any current or former emp…
A federal prosecutor leading the investigation into St. Louis County Executive Steve Stenger’s administration has asked the county to turn ove…
A federal grand jury indicted Stenger on charges of theft of honest services. Stenger resigned; the county council chose Sam Page to fill the …
Local politicians and residents took to social media to react to St. Louis County Executive Steve Stenger's indictment Monday.
These individuals were involved in some of the transactions outlined in the 44-page indictment.
Stenger and Sweeney instruct businessman to ignore the Post-Dispatch in an effort to conceal scheme, indictment alleges.
‘Talk to her and say, look at, Sheila, there are some real reasons why we can’t see this go the wrong way.’
Obscure fire district committee became a big donor to Stenger and earned the attention of federal investigators.
The $100,000 St. Louis County Port Authority marketing contract that is at the heart of the federal indictment of former County Executive Stev…
Talking with this week's host, David Hunn, reporters Jeremy Kohler and Jacob Barker discuss the indictment of former St. Louis County Executiv…
Former St. Louis County Executive Steve Stenger, who resigned Monday after his indictment on pay-to-play charges, is scheduled to plead guilty…
He pleaded guilty to the three federal counts in a pay-to-play scheme that could earn him three to four years in prison under federal sentenci…
Here’s a look at Stenger’s time as a public servant.
There was no record of whether the FBI successfully accessed Stenger’s phone data, but the 44-page indictment unsealed April 29 quoted many of…
The former CEO of the St. Louis Economic Development Partnership admitted that she both knew about and covered up former St. Louis County Exec…
Executives of a company that agreed to buy the Jamestown Mall from the St. Louis County Port Authority said Wednesday they had nothing to do w…
Bill Miller, chief of staff to former St. Louis County Executive Steve Stenger, pleaded guilty to a federal felony and admitted helping Stenge…
The St. Louis County Council is preparing a letter to help a federal judge decide how much former County Executive Steve Stenger should pay th…
John G. Rallo, one of disgraced former St. Louis County Executive Steve Stenger’s earliest campaign donors, pleaded guilty in federal court to…
Council member Tim Fitch, R-3rd District, who introduced the ordinance, said the council believes it affects former County Executive Steve Ste…
Stenger was sentenced to 46 months in prison and fined $250,000 for using county staff and resources to do the bidding of his campaign donors.
“It’s a very sad day for democracy,†U.S. District Judge Catherine Perry told Stenger. “This kind of corruption causes the public to lose fait…
As part of her plea, Sweeney admitted knowing about and failing to report Stenger’s schemes to use county resources to reward his donors while…
Stenger, who reported to prison last month to serve a 46-month prison sentence, is scheduled to be released after just 27 months, according to…
A former director of the office that awards contracts has sued St. Louis County claiming that he was wrongfully fired in 2018 after he raised …
The chief executive of a tech firm that won a no-bid contract under former County Executive Steve Stenger’s administration in 2017 said Tuesda…
The true source of the donation sheds more light on how Sinquefield’s operation was able to funnel approximately $700,000 to Stenger’s politic…
John Rallo, who federal prosecutors say gave campaign donations to Stenger in exchange for real estate deals and a sham contract with economic…