Metro-East Businessman Pleads Guilty to Conspiracy to Defraud the City of East St. Louis and Money Laundering
Stephen L. Carraway, 50, of Cahokia, IL, plead guilty in federal court to conspiracy to defraud the City of East St. Louis’ Demolition Program and to Money Laundering (engaging in a monetary transaction over $10,000 in property derived from specified unlawful activity), the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Carraway owned and operated Steve’s Hauling Inc., an Illinois corporation with its principle place of business in the City of East St. Louis. Steve’s Hauling provided demolition services to the City of East St. Louis. As part of the plea Carraway admitted that in 2010 he was told to make a cash payment in the form of a kickback to a City of East St. Louis official in order to receive an emergency demolition contract from the City of East St. Louis. Carraway further admitted that he was told how much to bid in order to be awarded the contract. Carraway also admitted that he submitted a falsified certificate of insurance in the bid proposal when he did not have an existing liability insurance policy in effect. Carraway faces up to fifteen years in prison, 3 years’ supervised release, and a fine of up to $500,000.00 at his sentencing, which is scheduled for March 20, 2013.
The investigation was handled by the Federal Bureau of Investigation and the Internal Revenue Service - Criminal Investigations, with the cooperation of the St. Clair County State’s Attorney’s Office. The prosecution of the case is being handled by Assistant United States Attorney Norman R. Smith.