Former Stenger donor to plead guilty in pay-for-play scandal Tuesday
ST. LOUIS – A local businessman will plead guilty Tuesday to his role in former St. Louis County Executive Steve Stenger’s pay-to-play scandal.
John Rallo was charged with three counts of honest services mail fraud and bribery in federal court. The indictment alleges Rallo, a Stenger campaign donor, received county contracts at the county executive’s discretion.
State officials said six investors gave Rallo money for a company that was supposed to supply coconut powder to large retailers. Rallo claimed he could not repay investors but court documents said he actually funneled the money into his other businesses.
He previously entered a not guilty plea in May to charges of mail fraud, bribery, and theft of services.
Rallo was ordered to repay $1.2 million to investors and a $30,000 civil penalty in an unrelated case.
Stenger resigned in late April 2019 following a federal indictment.