Authorities say that a 49-year-old Clayton-based financier mislead and defrauded his investors. A civil complaint was filed by the U.S. Securities and Exchange Commission alleging that the financier defrauded his investors by diverting their funds for his personal use, obligations and debts. It is unclear whether the SEC charges will form the basis of federal criminal fraud or conspiracy charges against the financier in the future.

There are many types of federal crimes that a St. Louis area resident can be charged with including white collar crimes, continuing criminal enterprise, internet crimes, and RICO charges. Defending any of these federal charges requires a criminal defense attorney who is comfortable handing complex litigation and understanding all of the issues involved in a federal defense case.

In the case of the Clayton-based financier, there is a possibility that federal prosecutors will take a look at his case to determine whether criminal charges are warranted. The financier filed bankruptcy last week along with three of his companies but he insists that this is not a matter of public concern.

"There are not many people affected by this," the financier said. "This is a personal matter. This was a personal loss. This doesn't involve investors."

This highlights the issues that many high-profile individuals in St. Louis face: allegations of financial misfeasance can damage professional reputations and draw unwanted financial scrutiny. Reports of the financier's "lavish lifestyle" have circulated around the community and investors in some of the financier's companies are trying to connect his lifestyle with their financial losses. It is unclear whether there is a correlation between the financier's lifestyle and investment losses or whether the financier will ultimately face additional civil or criminal litigation.

Source: Post-Dispatch, "SEC accuses Clayton-based financier of defrauding investors," Jim Doyle, Jan. 18, 2012