Stenger crony accused of bilking investors out of $1.2 million
ST. LOUIS — A businessman charged with crimes in former St. Louis County Executive Steve Stenger’s pay-to-play scandal is now accused by Missouri officials of defrauding investors out of $1.2 million.
John G. Rallo, one of Stenger’s earliest campaign donors, was served with a cease-and-desist order from the Missouri secretary of state’s securities division last week, his lawyer said Saturday.
The lawyer, John Rogers, said he had yet to review the order with Rallo and had no comment. Rallo, of Olivette, will have an opportunity to reply to the allegations against him, Rogers said.
The 18-page order claims that Rallo collected more than $1 million from five investors in the St. Louis area and one in Utah. Rallo asked them to invest in a company selling coconut powder to Costco and Sam’s Club as a sweetener and for use in food products. Rallo eventually told them that the business, Food for Health International LLC, was unable to pay them back, the order says. But state officials say that Rallo actually funneled the money into his other businesses.
Read more: https://www.stltoday.com/news/local/crime-and-courts/stenger-crony-accused-of-bilking-investors-out-of-million/article_9a0a57f3-49f0-5b9f-af04-312478ef1600.html