Former Missouri Mayor Pleads Guilty to Wire Fraud Charges

The former mayor of Grandview, Missouri has pleaded guilty to federal wire fraud charges.

On Tuesday, February 11th, Stephen Dennis pleaded guilty to wire fraud in Kansas City federal court. He admitted to defrauding the International House of Prayer of $35,000.

His admission means that he faces up to 20 years in prison, although he could face as little as a year and a day thanks to a plea agreement, which has not yet been settled.

Dennis reportedly ran a company, Matters of the Heart, which was never properly incorporated or declared a tax-exempt non-profit under Missouri law or from the IRS. Dennis also admitted, during questioning, that he had funneled $34,000 from the church charity to his personal account, although the money was earmarked to help the poor and elderly of Grandview.

“He made representations to the International House of Prayer that (Matters of the Heart) was tax exempt and was in good standing with the Missouri secretary of state,” said Assistant U.S. Attorney Roseann Ketchmark.

Reportedly, Dennis suddenly resigned as Grandview’s mayor in the middle of his second term. Because of his resignation, attention turned to Matters of the Heart, which Dennis founded in 2011 as a charitable organization. That’s when insinuations of wire fraud began.

In September of 2012, Dennis reportedly accepted a $10,000 check from the International House of Prayer and deposited the money into Matters of the Heart’s bank account. In December, he accepted a second check from the church organization, this time for $25,000. Around that time, the Missouri secretary of state’s office threatened to dissolve Matters of the Heart because it was not in compliance with the federal government’s nonprofit tax laws.

During his wire fraud charges hearing, Dennis admitted that 97% of the money that should have gone to Matters of the Heart went instead to pay his family’s bills.

Dennis was released from jail on his own recognizance just before the plea hearing. No sentencing date has yet been set.

Federal Wire Fraud Charges and Defense

The law broadly defines wire fraud as devising or intending to devise a scheme to defraud others of money or property under false or fraudulent pretenses, representations or promises by means of electronic communications, or “wires.” Because they typically involve interstate matters, most wire fraud cases are considered federal crimes with convictions carrying heavy fines, prison sentences of up to 20 years, or both.

Our federal criminal defense lawyers handle wire fraud cases involving:

• Fraudulent insurance claims
• Bond issuances and investment schemes
• Falsifying loan applications
• Check fraud schemes
• Bribes or kickbacks
• False advertising or misrepresentation in sales transactions

Transferring money to an offshore or international bank may be legitimate and legal transactions; however, tranferring money to an offshore or international bank account to hide a crime can lead to serious federal criminal charges.

The Strom Law Firm Defends Wire Fraud and Other Federal Charges

The Strom Law Firm, LLC has the experience that you need to defend your wire fraud charge. Our experience and familiarity with prosecutorial techniques provide the basis for experienced and effective legal representation. We will fight hard to have your charges reduced, or even dismissed. Contact us today for a free consultation to discuss the facts of your case as well the most effective way to proceed with your case. 803.252.4800