Judge to recommend clearing accused developer
Friday, October 29, 2010
ST. LOUIS (AP) — A federal judge says she’ll recommend that a felony indictment accusing a St. Louis developer of bank fraud be thrown out.
The St. Louis Post-Dispatch reports that Magistrate Judge Mary Ann Medler says the U.S. government has failed to show that 52-year-old John Steffen lied or made misrepresentations to the Business Bank of St. Louis over a 2007 loan.
Steffen is accused of defrauding a bank by pledging Brownfield Remediation tax credits as collateral on a loan valued at more than $1.1 million.
The loan was supposed to be for environmental cleanup and remediation of the Metropolitan Building in midtown St. Louis. Instead, authorities say, Steffen sold $827,415 of tax credits for use on other projects.
Prosecutors say they’re weighing their options and have until Nov. 8 to reply in writing to Medler’s recommendation.
Information from: St. Louis Post-Dispatch, www.stltoday.com
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