Indicted St. Louis County businessman faces more trouble

ST. LOUIS (AP) — A businessman already accused of bribery as part of former St. Louis County Executive Steve Stenger’s pay-to-play scheme is facing fraud accusations from a state agency.

The Missouri Secretary of State’s office said Monday that its securities division has issued a cease-and-desist order against John Rallo, accusing him of defrauding six investors out of $1.3 million. Five of the investors are from the St. Louis area, and one is from Utah.

Rallo’s attorney, John Rogers, didn’t immediately respond to a phone message seeking comment. Rallo does not have a published phone listing.

Stenger, a Democrat, pleaded guilty on May 3 to federal charges for directing county contracts to campaign donors. The indictment cited businesses operated by Rallo, who was indicted last week. He pleaded not guilty on Friday.

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