Stenger resigns after indictment on 3 counts of alleged bribery, mail fraud

By NewsRadio 1120 KMOX
ST. LOUIS (KMOX) updated with comments from Stenger's lawyer and Ast. U.S. Attorney - St. Louis County Executive Steve Stenger pled not guilty in federal court, Monday morning. He was indicted on three counts of honest services bribery/mail fraud.

Stenger's resigned shortly after the indicment was made public and KMOX has obtained a copy of that resignation letter. 

It states: 

"It has been an honor to serve the people of St. Louis County as St. Louis County Executive. The past four years have been some of the most fulfilling years of my professional career.
I have determined after much thought that it is in the best interest of our County and my family that I resign as St. Louis County Executive effective immediately."

The Indictment alleges that beginning in October 2014 and continuing through December 31, 2018, Stenger and various individuals and companies schemed to defraud and deprive the citizens of St. Louis County. The purpose of the scheme was for Stenger to accept campaign contributions from individuals and their companies in exchange for favorable official action, such as for individuals and their companies to enrich themselves and their companies by secretly obtaining favorable action for themselves and for their companies, through corrupt means. 

Some of the specific examples include Stenger took official action to insure that two companies owned by John Rallo, Cardinal Creative Consulting and Wellston Holdings, LLC,, obtained a 2016 consulting contract through the St. Louis County Port Authority, options to purchase two properties in Wellston, Missouri which were held by the Land Clearance for Redevelopment Authority of St. Louis County during 2016 and 2017.

Stenger entered the courthouse with is lawyer Scott Rosenblum, Monday just before 1 p.m.

Rosenblum spoke to media with Stenger at his side, but did not make comments about the case. 

"This was not a surprise to us," Rosenblum said of the indictments released Monday morning. "We've been in contact with the United States Attorney's office for quite a while. Everything today was not a surprise."

Stenger did not make a statement. 

After the arraignment, Assistant U.S. Attorney Hal Goldsmith talked to reporters, but was limited in what he would say because it is an ongoing investigation. He would not talk on whether some County employees wore a wire to capture conversations.

"I cannot confirm the source of any of the text messages, or recorded meetings or recorded phone calls," Goldsmith says. "Again there were search warrants and there were phone orders and there were cooperating individuals."

The indictment also alleges Stenger took steps to hide, conceal and cover up his illegal conduct and actions, including making false public statements.   

Stenger is scheduled to appear at the Eagleton Courthouse in downtown St. Louis at 1:00 p.m. for his arraignment.

Read the full 44-page indictment here: 

Indictment - Steve Stenger by KMOX News Radio on Scribd

An interim St. Louis County Cxecutive is expected to be selected by a vote from the County Council at tonight's 6 p.m. meeting. Any democrat can be named to the position.

St. Louis Mayor Lyda Krewson says Stenger made the right choice to resign and "will work with the new County Executive." She tweeted a short statement on the news of Stenger's resignation, saying "These are very serious charges. This clearly would’ve had a negative effect on the county executive’s ability to govern. That affects the whole region."

A federal grand jury issued a subpeona last month asking for all county contracts PLUS Stenger's call history, texts and emails with current and former county employees regarding said contracts. It also demands recordings and minutes from council meetings and hearings dating to 2015.

A spokesman for Stenger says they will fully cooperate with the federal investigation.

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