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Former CEO of Missouri Employers Mutual and attorney for Herzog Crebs indicted on misappropriation of insurance funds

April 12, 2012

St. Louis, MO - The United States Attorney’s Office announced today that ROGER B. WILSON of Columbia, Missouri, and EDWARD J. GRIESEDIECK III of St. Louis, Missouri, were indicted late yesterday afternoon on a charge of misappropriating $5,000 from the Missouri Employers Mutual Insurance Company, which is an insurance company created by the Missouri Legislature in 1994 to provide workers compensation insurance.

At all relevant times for the indictment, the defendant Roger Wilson served either as the interim (2009) or permanent (2010) Chief Executive Officer for Missouri Employers Mutual Insurance Company (hereinafter referred to as “MEM”). The defendant Edward J. Griesedieck III was a partner at the Herzog Crebs law firm in St. Louis and a member of that law firm’s management committee. Douglas Morgan, since deceased, was a member and Chairman of the Board of Directors for MEM.

The indictment charges that in the summer of 2009, at the direction of Douglas Morgan, Edward Griesedieck caused his law firm to make a $5,000 contribution to the Missouri Democratic Party and then include the cost of the $5,000 contribution as a hidden cost in the legal bills, which were submitted in the normal course of business to MEM. As the Executive Director of MEM, Roger Wilson later approved the payments of the legal billings, including the $5,000, knowing that $5,000 of the bill was not for legal work but was in fact a reimbursement for the contribution to the Democratic Party. Other than Douglas Morgan, no other member of the MEM Board of Directors approved the political contribution, knew of a political contribution being included in the legal billing or approved reimbursing the law firm for the $5,000 contribution. MEM paid the $5,000 to the Herzog Crebs law firm on October 8, 2009.

In December 2009, Douglas Morgan requested a second contribution from Griesedieck for the Democratic Party, this time in the amount of $3,000. Reimbursement to the law firm was ultimately planned to be handled in the same manner as the first contribution. However, in August of 2010, when the general counsel for MEM in a routine review of legal matters questioned that particular legal billing, Roger Wilson decided to reimburse the law firm from his personal funds. No loss was suffered by MEM with respect to this second contribution.

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