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JC man indicted in defrauding scheme

JC man indicted in defrauding scheme

January 12th, 2018 by News Tribune in Local News

A Jefferson City man has been indicted by a federal grand jury on four counts of mail fraud as part of a scheme to defraud residents of a vacation community in Potosi.

According to the indictment, Dale Johansen, 63, owned Johansen Consulting Services LLC and was appointed as the receiver for Rogue Creek Utilities Inc., which provided all sewer, water services and management to Rogue Creek, a vacation community containing three lakes in Potosi and composed of approximately 90 active connections to the drinking water and sewer systems.

Johansen's duties as receiver were collecting samples and providing proper operation at Rogue Creek, including oversight and maintenance of the water softener system.

On March 9, 2016, the Missouri Department of Natural Resources learned the water softener system at Rogue Creek was not operational, and the residents had been receiving well water not treated for lead removal for at least six months. On March 10, 2016, the water softener system was brought back online so the water was being treated; and on March 11, 2016, DNR performed testing on the drinking water, with three of five samples testing high for lead.

Authorities said Johansen issued invoices to customers for water services and falsely represented to the residents their well water was clean, disinfected and safe for human consumption. He also issued monthly invoices for water services, including removal of lead in well water, with the knowledge the well water was not being treated.

If convicted, Johansen faces up to 20 years in federal prison, a fine of $250,000 or both on each count. Restitution to the victim or victims is mandatory.