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Wednesday, July 11, 2012

Former CEO for Missouri Employers Mutual and Attorney Sentenced for Misappropriation of Funds

Seal of Missouri.
Seal of Missouri. (Photo credit: Wikipedia)

Roger B. Wilson was sentenced to two years probation, a $5,000 fine, $5,000 restitution and 100 hours of community service.  Edward Griesedieck III was sentenced to one year of probation, a $5,000 fine, $5,000 restitution and 100 hours of community service.  Both were sentenced involving their misappropriation of funds from an insurer.

Wilson was CEO of Missouri Employers Mutual (MEM),  a provider of workers compensation insurance.  Douglas Morgan, now deceased, was the Chairman of the Board of Directors of MEM.  Edward Griesedieck III was a partner with the St. Louis law firm of Herzog Crebs and provided legal services to MEM.  In July 2009, Griesedieck made a $5,000 contribution to the Missouri Democratic Party at the direction of Douglas Morgan and then billed the contribution to MEM on his legal bill as "cost advanced."  The MEM Board of Directors was unaware of the political contribution or the falsity of the legal bill.  Without permission from the Board, Wilson, at the direction of Morgan, approved the payment of Griesedieck’s legal bill, including the reimbursement of $5,000 for the political contribution.  As a result, the public campaign disclosure records for the State of Missouri falsely reflected the contributions from Griesedieck’s law firm.  

In December of 2009, Morgan again directed Griesedieck to make a contribution to the Missouri Democratic Party, this time for $3,000, but with the promise that he, Morgan, would personally reimburse Griesedieck for the contribution.  Later, when Morgan ran into financial problems, he then directed Griesedieck to bill MEM for the contribution.  However, when in-house counsel for MEM discovered in a routine review that the "cost advanced" related to a contribution to the Missouri Democratic Party, Wilson then reimbursed Griesedieck from his personal funds. 

Rodger Wilson, Columbia, MO; and Edward Griesedieck III, Town & Country, MO, both entered guilty pleas in April to one misdemeanor count of misappropriation of funds from an insurer. They appeared today for sentencing before U.S. Magistrate Judge Mary Ann Medler. 

As part of his plea, Griesedieck agreed to surrender his law license for 18 months.  Further, both Wilson and Griesedieck entered into consent orders with the Missouri Ethics Commission and paid fines of $2,000.  Both have also made restitution to MEM for the funds used to reimburse Herzog Crebs for the political contributions.
This case was investigated by the Federal Bureau of Investigation.  Assistant United States Attorney Hal Goldsmith handled the case for the U.S. Attorney’s Office.  Missouri Employers Mutual fully cooperated and provided assistance in the investigation.

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