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July 2004TransWorld Equipment Owner Pleads GuiltySt. Louis, MO— Floyd E. Riley, a longtime Moberly, Missouri area businessman, pled guilty in federal court in St. Louis to four felony fraud charges. The announcement was made by United States attorney James G. Martin and Thomas Bush, special agent in charge of the St. Louis office of the FBI.
In papers filed with the court Riley admitted that, from January, 1997 up to and including November, 2003, he devised a scheme to defraud certain customers in his businesses of money and property by making false representations about the availability of heavy equipment for purchase, as well as false representations as to the operating condition of that equipment. The used equipment often consisted of tire shredders and tub grinders used in the recycling industry. Riley also admitted defrauding customers who were selling equipment by issuing bad checks, or by stopping payment on checks he used to pay for the equipment. Riley admitted that telemarketers and others working in his office identified customers for his heavy equipment business. He further admitted that he controlled all final negotiations with customers after his employees had made initial contacts. Riley admitted that his customers might have suffered losses up to $350,000. Riley was charged in a 29-count indictment by a federal grand jury in St. Louis on May 15, 2003. He was charged in a second indictment by a grand jury in St. Louis on November 18, 2003. The two indictments identified some fifteen businesses and individuals victimized by Riley. Sentencing has been set for September 28, 2004.
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Riley pled guilty to two felony counts of wire fraud, one felony count
of money laundering and one felony count of transporting stolen property
in interstate commerce. Riley had been indicted on two occasions last
year by the federal grand jury in St. Louis on criminal offenses stemming
from the operation of Global Intermark, Inc. and TransWorld Equipment
Sales, Inc., through which he bought and sold, used heavy equipment. Riley
admitted that he identified the victims in the fraud scheme through telemarketing
activities conducted at those businesses. He appeared before United States
District Judge E. Richard Webber.