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September 27, 2005

Elizabeth Kaufman

Secretary of State White Announces St. Louis Man
Sentenced to 40 Years for Stealing from Investors

SPRINGFIELD — Illinois Secretary of State Jesse White announced that a St. Louis, Missouri man found guilty of squandering money from people who received settlements for personal injury or medical malpractice cases was sentenced to serve 40 years in prison and ordered to pay $83 million dollars to his victims.

James R. Gibson, 60, was sentenced to prison and ordered to pay restitution by U.S. District Judge J. Phil Gilbert on Wednesday, September 21, 2005. Judge Gilbert called Gibson a 'parasite' for preying on his 183 victims. Gibson had told his investors he would safely invest their money to provide them with a monthly income and long-term financial stability. Instead, he spent the money on risky business ventures and personal luxury items, including a 67-foot yacht. He operated in Illinois, Missouri, and Florida.

Gibson pleaded guilty to one count of conspiracy to commit mail fraud in 2002 and was sentenced to 21 years and 10 months. That sentence was later vacated by the 7th Circuit Court of Appeals and sent back to the court in East St. Louis for further proceedings.

In May of this year, Gibson was again found guilty, this time of seven counts of mail fraud, conspiracy and money laundering tied to his company, SBU, Inc. that led to his current sentencing of 40 years.

Gibson's wife Marjorie had pleaded guilty to money laundering in 2002 and was sentenced to three years in prison. She has completed her sentence and been released.

The Secretary of State's Securities Department staff worked with the investigative team comprised of officers of the U.S. Postal Inspectors, the U.S. Internal Revenue Service, the Federal Bureau of Investigation in pursuing this case, which was tried by the Office of the United States Attorney for the Southern District of Illinois. In addition to the criminal action, the Securities Department permanently prohibited Gibson, his wife and associates from offering or selling securities in the State of Illinois.