a:25:{s:9:"weblog_id";s:1:"4";s:8:"entry_id";s:0:"";s:6:"sticky";s:0:"";s:14:"allow_comments";s:1:"n";s:16:"allow_trackbacks";s:1:"n";s:10:"entry_date";s:19:"2010-10-28 03:31 AM";s:15:"expiration_date";s:0:"";s:23:"comment_expiration_date";s:0:"";s:8:"category";a:1:{i:0;s:1:"4";}s:9:"author_id";s:1:"4";s:6:"status";s:4:"open";s:14:"trackback_urls";s:0:"";s:18:"versioning_enabled";s:1:"y";s:5:"title";s:38:"Judge Moves to Dismiss Steffen Charges";s:9:"url_title";s:38:"judge_moves_to_dismiss_steffen_charges";s:4:"save";s:10:"Quick Save";s:11:"field_id_26";s:38:"Judge Moves to Dismiss Steffen Charges";s:11:"field_ft_26";s:4:"none";s:11:"field_id_31";s:0:"";s:11:"field_id_44";s:125:"On Monday a federal magistrate judge has recommended that a fraud charge against developer John Steffen developer be dropped.";s:11:"field_ft_44";s:4:"none";s:11:"field_id_28";s:16:"Steffen, Pyramid";s:11:"field_ft_28";s:4:"none";s:11:"field_id_29";s:1893:"<div>
<div style=\"overflow: hidden; color: #000000; background-color: transparent; text-align: left; text-decoration: none; border: medium none;\">
<p>On Monday a federal magistrate judge has recommended that a fraud charge against developer John Steffen developer<strong> </strong>be dropped.</p>
<p>Magistrate Judg<strong></strong>e Mary Ann Medler of the U.S. 
District Court in St. Louis recommended dismissing the indictment 
because she said federal prosecutors failed to show that Steffen, owner of 
defunct Pyramid Construction Inc., committed a fraud scheme against The 
Business Bank of St. Louis.</p>
<p></p>
<p>In August, Steffen was accused of defrauding the Business Bank
out of $827,000 in state tax credits in 2007 by selling the tax
credits for cash and unlawfully using the credits as collateral on
a loan. Steffen pleaded not guilty to the charge.</p>
<p>&ldquo;Defendant&rsquo;s failure to tell the bank of his use of the collateral 
between December 2007 and April 2008 absent an affirmative act to 
mislead the bank is not a misrepresentation or a scheme to defraud 
within the meaning of the bank fraud statute,&rdquo;&nbsp; the judge wrote. She further stated that, absent a separate legal duty to disclose the use of the tax credits no bank fraud existed.&nbsp;</p>
<p>The U.S. District Court must still approve the recommendation to grant Steffen&rsquo;s motion to dismiss the 
indictment for failure to state an offense. Federal prosecutors have two weeks to respond.</p>
<p>Prior to folding Steffen\'s company, Pyramid Development, was the largest holder of Downtown St. Louis real estate for redevelopment, prior to folding in April, 2008. It\'s portfolio, totaling more than two million square feet, included such landmarks as the Jefferson Arms and the Arcade Building. Most of the buildings have been resold to other developers.</p>
<span> </span></div>
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