BRIDGEPORT/U.S. DISTRICT COURT—MAYOR MAX SCHAUF HAS BEEN INDICTED BY A FEDERAL GRAND JURY.
Here’s the press release from the U.S. Attorney in Benton:
SOUTHERN ILLINOIS MAYOR AND INDIANA MAN INDICTED
The United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced that Max R. Schauf, 56, currently the mayor of Bridgeport, and Paul R. Kramer, 62, of Vincennes, Indiana, were arraigned today in federal district court in Benton on federal charges.
The indictment, returned on November 6, 2012, and previously held under seal, alleges that from July, 2008, until March, 2011, Max Schauf engaged in a scheme to defraud the City of Bridgeport by submitting false and fraudulent invoices, contracts, and bills for services and equipment, all from which he took a portion of money for his personal use. Paul Kramer is alleged to have made false statements to agents investigating the scheme.
The indictment charges Mayor Schauf with three counts of Mail Fraud and one count of Obstruction of Justice. The potential punishments for each charge include a maximum penalty of 20 years in prison, a $250,000 fine, and 3 years of supervised release.
The indictment charges Kramer with two counts of making False Statements to Federal Officers. Each charge carries a maximum penalty of 5 years in prison, a $250,000 fine, and 3 years of supervised release.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge and is entitled to a fair trial at which the Government must prove guilt beyond a reasonable doubt.
The case was investigated by agents of the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorneys Ranley R. Killian and Liam Coonan.
Here’s a shot of the building from about noon today:
Schauf’s “club” in Bridgeport. Or what’s left of it.
We reported AT LENGTH about the invoices and materials during the time frame they were coming under question. As well, we reported earlier this year that sources in Springfield had confirmed that there was an intensive investigation into Schauf. He should’ve gotten out when the getting was good.
Schauf posted a $50,000 security bond today and was released. This is the type of bond which isn’t necessarily an OR, and Schauf didn’t have to post any cash or put up any property; he’s just signed a contract with the court guaranteeing that if he doesn’t show, a warrant for his arrest will be issued. Our legal sources say this isn’t used very often, but that’s what Schauf got, and to us, it’s very telling: he doesn’t even have five grand to post for his bond, and the court apparently doesn’t believe he’s a flight risk. Of course, it’s likely that they don’t know him very well.
There’ll be no mugshot; the feds don’t release them. Please see next week’s print version of Disclosure for full details, as we’ll recap all the documents in question. Thanks for reading Disclosure; and please consider a subscription to both our print version as well as our e-Edition so you won’t miss a THING that goes on in southern Illinois!