St. Louis, MO –John Rallo, 54, formerly of St. Louis County, was sentenced to 17 months in prison for his involvement in a bribery scheme with Former St. Louis County Executive Steve Stenger. Rallo appeared in federal court this morning before U.S. District Judge E. Richard Webber.
According to court documents, beginning in October 2014 and continuing through December 31, 2018, former St. Louis County Executive Steve Stenger schemed to defraud and deprive the citizens of St. Louis County of their right to his honest and faithful services, and the honest and faithful services of former CEO of the St. Louis Economic Development Partnership, Sheila Sweeney, through a pay to play bribery scheme. The purpose of the scheme was for Stenger to secretly use his official position to enrich himself through soliciting and accepting campaign contributions from businessman John Rallo and other individuals in exchange for favorable official action in the awarding of contracts and grants through St. Louis County and the St. Louis Economic Development Partnership.
Stenger, in exchange for campaign donations and several fundraising events hosted by John Rallo, took official action to insure that Rallo and his company, Cardinal Insurance, obtained insurance contracts through St. Louis County during 2015 and 2016. Further, Stenger took official action to insure that John Rallo and his company, Cardinal Creative Consulting, obtained a sham 2016 consulting contract in the amount of $130,000 through the St. Louis County Port Authority. Additionally, Stenger took official action to insure that John Rallo and his company, Wellston Holdings, LLC, obtained land contracts for two industrial properties in Wellston, Missouri which were held by the Land Clearance for Redevelopment Authority of St. Louis County during 2016 and 2017. Rallo, Stenger, and Sweeney took steps to hide, conceal and cover up the illegal bribery scheme, including making false public statements.
Rallo pled guilty in July 2019 to three counts of Honest Services Mail Fraud/Bribery.
The Federal Bureau of Investigation and the Postal Inspection Service investigated this case with the assistance of the Internal Revenue Service Criminal Investigations. Assistant U.S. Attorney Hal Goldsmith is handling the case for the U.S. Attorney’s Office.