United States Attorney Announces Indictment in Twelve Million Dollar Fraud Scheme

ILLINOIS SECRETARY OF STATE

FOR IMMEDIATE RELEASE

August 24, 2000
CONTACT: Dave Druker
or

CONTACT: Tanya Solov
Director, Illinois Securities Department

United States Attorney Announces Indictment in Twelve Million Dollar Fraud Scheme
SPRINGFIELD –– Illinois Secretary of State Jesse White commended W. Charles Grace, United States Attorney for the Southern District of Illinois on his announcement that on August 23rd, 2000, the grand jury returned two indictments against Ronald Lee Roberts, age 40, of Florissant, Missouri.
     One indictment charges Roberts with theft from a bank, Possession of Stolen Property from a Bank, Engaging in a Monetary Transaction in Criminally Derived Property of a Value Greater than $10,000.00, and Criminal Forfeiture. The charges carry a maximum penalty of up to thirty (30) years in prison, a fine of up to $1 million and up to three (3) years supervised release. These charges allege Ronald Lee Robert's conduct in taking a bank check in the amount of $19,564.90 from the Firstar Bank of Alton, after he used the check as a deposit item to obtain two other cashier's checks. Ronald Lee Roberts then cashed the stolen checks at the Alton Belle Casino. Roberts was originally charged on July 19th, 2000, by Madison County, however the state is deferring to the federal government's charges because of Roberts' other offenses.
     Secretary of State Jesse Whites' office conducted an investigation of Roberts which lead to an Order of Prohibition that prohibits Roberts from offering and/or selling securities in Illinois.
     The second indictment, in a thirty four (34) count indictment charges Ronald Lee Roberts with three (3) counts of Money Laundering, thirty (30) counts of Engaging in a Monetary Transaction in Criminally Derived Property of a Value Greater Than $10,000.00, and one (1) count of Criminal Forfeiture. The charges carry a maximum penalty of up to three hundred sixty (360) years in prison, a fine of up to $9 million and up to five (5) years supervised release. The Criminal Forfeiture count seeks forfeiture of $11,558,908.00 in criminal proceeds.These charges allege Ronald Lee Robert's conduct in taking nearly $12 million in investor funds and conducting financial transactions at the Alton Belle Casino. Numerous investor checks were cashed by Roberts at the casino.
     Roberts is currently incarcerated and awaiting trial in the Eastern District of Missouri on charges arising out of an investment fraud scheme where it is alleged that Roberts, acting with others, falsely promised investors that he owned contiguous property in Kinloch, Missouri, for which he had a contract to sell for $200 million. The Instant Indictment charges Roberts with using investor money for financial transactions on the Alton Belle Casino.
     The prosecution is a result of an investigation conducted by the Secretary of State's Securities Department, the Internal Revenue Service, Criminal Investigation Division, and the Federal Bureau of Investigation out of the Eastern District of Missouri with the cooperation of the United States Attorney's Office for the Eastern District of Missouri, the Illinois Gaming Board, and the State of Missouri, Office of the Secretary of State.
     Secretary of State White's Illinois Securities Department regulates the Illinois Securities industry, providing for the protection of Illinois investors and the maintenance of a fair and orderly securities marketplace that encourages capital formation and economic growth in the State of Illinois. Illinois requires that all securities dealers, salespersons and investment advisers and their securities offerings be registered with the Department unless exempt by law.
     The Department enforces compliance with standards of conduct among those licensed to do business in Illinois through registration and on-site audits as well as investigating consumer allegations of fraud or improper practices in the securities marketplace. Any complaints pertaining to securities law violations should be directed to the Securities Department, toll free at 800-628-7937.