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Justice News

Department of Justice
U.S. Attorney’s Office
Eastern District of Missouri

FOR IMMEDIATE RELEASE
Friday, August 9, 2019

Former St. Louis County Executive Seven V. Stenger Sentenced to Federal Prison for "Pay to Play" Bribery Scheme

St. Louis, MO – Steven V. Stenger, 47, of Clayton, was sentenced to 46 months in prison, a fine of $250,000, three years’ supervised release, $130,000 restitution and a $300 special assessment related to his guilty pleas to three felony counts of honest services bribery/mail fraud.  He appeared in federal court today before U.S. District Court Judge Catherine D. Perry. 

According to court documents and statements made in court, beginning during October 2014, even before he was officially elected County Executive, and continuing through December 31, 2018, Stenger engaged in a systemic scheme to defraud and deprive the citizens of St. Louis County of their right to his honest and faithful services by soliciting and accepting bribes in exchange for county contracts and grants.  The purpose of the scheme was for Stenger to secretly use his official position to enrich himself through soliciting and accepting campaign contributions from individuals and their companies in exchange for his favorable official action in issuing government contracts and grants to those political donors.  Stenger directed members of his executive staff, including his chief of staff and chief of policy, and various other high level county employees to take steps to ensure that his political donors would win in the bidding process for various county contracts.  In doing so, other companies who expected a level playing field in the county’s bidding process were victimized, as were the approximately one million residents of St. Louis County.  For over four years, Stenger treated important county contracts and grants as something to barter away as if they were his own personal thank you gifts. 

One businessman from whom Stenger solicited and received political donations was John Rallo.  In exchange for campaign donations and several fundraising events, Stenger directed the county’s Director of Operations to award John Rallo and his company, Cardinal Insurance, insurance contracts through St. Louis County during 2015 and 2016.  Further, Stenger directed the Chief Executive Officer of the St. Louis Economic Development Partnership, Sheila Sweeney, to award John Rallo and his company, Cardinal Creative Consulting, a 2016 consulting contract for $130,000 through the St. Louis County Port Authority.  Additionally, Stenger took official action to ensure that John Rallo and his company, Wellston Holdings, LLC, obtained  two properties in Wellston, Missouri, which were held by the Land Clearance for Redevelopment Authority of St. Louis County during 2016 and 2017.  Stenger also admitted to steering a 2019 - 2021 state lobbying contract from the St. Louis Economic Development Partnership to a company identified as “Company One” in exchange for political donations and fundraising efforts from the company’s owner.  Stenger took steps to hide, conceal and cover up his illegal conduct, including making false public statements and directing others with knowledge of his scheme to make false public statements.

"Steve Stenger abused his power as an elected official to benefit himself," said Special Agent in Charge Richard Quinn of the FBI St. Louis Division. "Had the FBI and U.S. Attorney’s Office not stopped Stenger from misusing taxpayer dollars for his personal gain, he would have continued to run St. Louis County into the ground. He will now have years in federal prison to reflect on the cost of his greed.”

“Public service is a public trust,” said Assistant U.S. Attorney Hal Goldsmith.  “Through his illegal pay to play scheme aimed at filling his own political coffers, the former County Executive shattered that trust.  The residents of St. Louis County and St. Louis County government employees have suffered immeasurable harm as a result.  The Department of Justice will continue to aggressively investigate and prosecute public corruption wherever it exists, and work to restore the public’s trust in its elected officials.” 

The Federal Bureau of Investigation and the Postal Inspection Service investigated this case with the assistance of the Internal Revenue Service Criminal Investigations. 

Topic(s): 
Public Corruption
Updated August 9, 2019