Support Local Journalism. Join Riverfront Times Press Club.

Friday, August 13, 2010

John Steffen: Owner of Pyramid Construction Indicted for Fraud

Posted By on Fri, Aug 13, 2010 at 11:27 AM

One of the St. Louis' biggest downtown developers of the past decade was indicted this morning on federal fraud charges.

John Steffen (left) and fellow St. Louis developer Craig Heller receive a preservation award from Laura Bush in May 2007. - GEORGEWBUSH-WHITEHOUSE.ARCHIVES.GOV
  • John Steffen (left) and fellow St. Louis developer Craig Heller receive a preservation award from Laura Bush in May 2007.
The United States Attorney's Office charges John R. Steffen with a scheme to defraud The Business Bank of St. Louis by pledging Brownfield Remediation Tax Credits as collateral on a loan, and selling them to use the proceeds for other projects.

The indictment alleges that in May 2007, Steffen used the tax credits as collateral to obtain a loan from The Business Bank of St. Louis to one of his subsidiaries, MB Lofts, in the amount of $1,115,633. The purpose of the loan was for environmental cleanup and remediation of the Metropolitan Building. On December 21, 2007, Steffen fraudulently sold $827,415 of tax credits without the knowledge of The Business Bank, and used the proceeds for other projects.

Steffen, 52, St. Louis, was indicted by a federal grand jury on one felony count of bank fraud. If convicted, bank fraud carries a maximum penalty of 30 years in prison and/or fines up to $1,000,000.

In 2008, a financially overextended Steffen was forced to transfer ownership of a dozen projects valued at more than $600 million.

Tags: , , ,

Support Local Journalism.
Join the Riverfront Times Press Club

Local journalism is information. Information is power. And we believe everyone deserves access to accurate independent coverage of their community and state. Our readers helped us continue this coverage in 2020, and we are so grateful for the support.

Help us keep this coverage going in 2021. Whether it's a one-time acknowledgement of this article or an ongoing membership pledge, your support goes to local-based reporting from our small but mighty team.

Join the Riverfront Times Club for as little as $5 a month.

Read the Digital Print Issue

January 12, 2022

View more issues


Never miss a beat

Sign Up Now

Subscribe now to get the latest news delivered right to your inbox.

Best Things to Do In St. Louis

© 2022 Riverfront Times

Website powered by Foundation