Ex-SEMO regent indicted in fraud scheme

WASHINGTON, Mo. -- A prominent eastern Missouri attorney has been indicted for his alleged involvement in a $23 million investment fraud scheme.

William D. Kimme of Washington, Mo., was accused of acting as the escrow agent for three other suspects. The 32-count indictment was announced Thursday by a federal grand jury in Phoenix. Charged along with Kimme were Peter L. Macari of Phoenix, Gerald C. Trussell of Laveen, Ariz., and Larry Cates of Yakima, Wash.

Kimme is former member of the Southeast Missouri State University Board of Regents and served a term as president of the board. He also served on the St. Louis Sports Authority that was charged with overseeing construction of the city's domed football stadium that is now home of the St. Louis Rams.

The men face charges of wire fraud, mail fraud, securities fraud and money laundering, officials with the U.S. Attorney's office in Phoenix said.

Macari, Trussell and Cates were charged in previous indictments in July 2000, and again in August 2001.

The latest charges allege that over the last seven years, investors in the United States and abroad were swindled out of about $23 million. Authorities said the suspects promised returns as high as 160 percent per month through the purchase and trade of high-yield notes, discount notes or prime bank instruments that did not exist.

From 1998 through April 2000, investors were directed to deposit funds to a Mercantile bank account in Washington, Mo., either in the name of Kimme or in the name of his law office, officials said.

"After deducting his fee, Kimme would then move these funds to one of several accounts used by the defendants for their personal benefit or to conceal their scheme," the U.S. attorneys office alleged.

The defendants also maintained a bank account with the United Bank of Union, near Washington, officials said. Both towns are about 50 miles west of St. Louis.

Kimme was elected prosecuting attorney for Franklin County in 1964. He was defeated in his re-election bid two years later.