Attorney General's News Release

August 4, 2004

St. Louis man arrested after grand jury indicts him on charges of stealing $150,000 in tax credits from state

St. Louis, Mo. — Gregory S. Marshall, of St. Louis, was arrested Tuesday (Aug. 3) and charged with fraudulently obtaining $150,000 in tax credits from the state of Missouri. Marshall is the fifth person to face felony charges in an ongoing investigation into allegations of fraud against the state Rebuilding Communities Tax Credit Program. Four other defendants pleaded guilty to similar charges, including two in June.

A St. Louis City grand jury indicted Marshall (DOB - 7/25/59) on two counts of stealing by deceit, at the request of Attorney General Jay Nixon and St. Louis Circuit Attorney Jennifer Joyce. The charges allege Marshall fraudulently presented proof that his business, Innovative Computers, spent more than $408,000 in equipment expenditures in order to claim $150,000 in tax credit certificates.

The tax credits were issued through the Missouri Department of Economic Development's Rebuilding Communities Tax Credit Program. The program provides tax credits of up to 40 percent of expenditures by new businesses operating in economically distressed areas or by established businesses moving into economically distressed areas.

On June 22, Maryland residents Willie Adams and Maxine Allen each pleaded guilty to one felony count of stealing by deceit, in connection with defrauding the tax credit program. In February, St. Louis residents James Holtrop and his wife Jill C. Meyerhardt pleaded guilty to two counts of stealing by deceit brought by Nixon and Joyce. Those four defendants, who have not yet been sentenced, have agreed to cooperate with the ongoing investigation.

Stealing by deceit in excess of $25,000 is a class B felony, punishable by a minimum of five years in prison and a maximum of 15 years in prison. The charges against Marshall are merely accusations; as in all criminal cases, the defendant is presumed innocent until or unless proven guilty in a court of law.

Inquiries from consumers should be directed to consumer@ago.mo.gov or 1-800-392-8222 (from within Missouri) or 573-751-3321 (outside Missouri).

All media inquiries should be directed to Press Secretary John Fougere.

E-mail      Phone: 573-751-8844         Fax: 573-751-5818