ST. LOUIS 鈥 Longtime Aldermanic President Lewis Reed, Alderman Jeffrey Boyd and former Alderman John Collins-Muhammad were charged Thursday with accepting bribes from a small business owner in exchange for legislation authorizing property tax breaks.
Though speculation had grown in recent weeks that Collins-Muhammad faced federal charges after his sudden resignation from the Board of Aldermen on May 12, citing 鈥渕istakes鈥 and a 鈥渢ough鈥 few weeks ahead, the indictment of Reed and Boyd, two of the board鈥檚 longest-serving and most powerful members, came as a surprise to many.
The charges are likely to upend city politics. Both Reed and Boyd have been key players on the Board of Aldermen for more than 15 years. Collins-Muhammad, a Reed ally who was first elected in 2017, had been among the board鈥檚 rising newer members.
Reed, 59, is one of the most powerful officials in city government. As president of the Board of Aldermen, a position he was first elected to in 2007, he controls bill assignments to aldermanic committees and presides over the board鈥檚 weekly meetings. And along with the mayor and the comptroller, he is one of three members of the city鈥檚 top fiscal body, the powerful three-member Board of Estimate and Apportionment that controls city spending.
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Reed faces two bribery-related charges, according to U.S. Attorney Sayler Fleming鈥檚 office.
Boyd, 58, has been an alderman since 2003 and has run unsuccessfully citywide three times 鈥 once for mayor and twice for city treasurer.
He currently chairs the Housing, Urban Development and Zoning Committee, which oversees development-related matters, including incentives. Because of that position, he also serves on the board of the 50度灰视频 Development Corp., which oversees tax abatement and the Land Reutilization Authority.
Boyd is facing two bribery-related charges and a separate, two-count wire fraud indictment alleging he fraudulently sought $22,000 from an insurance company for damage to vehicles that he falsely claimed to own.
Collins-Muhammad, 30, was indicted on two bribery-related charges and one charge of honest services bribery/wire fraud.
The three men, all Democrats, entered not guilty pleas at a court hearing Thursday afternoon.
Boyd declined to comment as he left the federal courthouse. Likewise, Collins-Muhammad and his attorney, Matthew Radefeld, also had no comment.
But Reed told reporters after the hearing that he had no plans to resign and that he would 鈥渃ontinue to be a good steward for the city.鈥 An indictment, he said, 鈥渄oesn鈥檛 mean that you鈥檙e guilty.鈥
鈥淭he voters know me, the voters know the 20-plus years that I鈥檝e served, they know my record,鈥 Reed said. 鈥淓very major development in this city I鈥檝e led for 20 years.鈥
He said he was obviously 鈥渟tressed鈥 about the charges, but that he and his legal team were still digesting the indictment 鈥渢o understand what the case is. And at this point, we received the paperwork when you received it.鈥
鈥楧o cash rather than checks?鈥
The charges followed a two-and-a-half year investigation from the FBI and U.S. Attorney鈥檚 Office involving surveillance, hundreds of recorded phone calls and meetings and thousands of text messages and emails, Assistant U.S. Attorney Hal Goldsmith revealed in court.
Goldsmith, who heads public corruption prosecutions, declined to answer questions because the case is pending but said in a statement outside the courthouse that the three defendants accepted cash bribes and other things of value in 鈥減ay-to-play schemes鈥 for the passage of board bills and other official action.
The indictment alleges that Collins-Muhammad and later Reed helped a small business owner obtain a property tax abatement from the city for a new gas station and convenience store on Von Phul Street near Interstate 70 that a businessman was seeking to develop in Collins-Muhammad鈥檚 21st Ward on the north side.
The business owner is referred to as 鈥淛ohn Doe鈥 in the indictment. But the properties mentioned appear to correspond to sites owned by Mohammed Almuttan that were the subject of federal subpoenas sent to the city鈥檚 development arm. The subpoenas were released Wednesday to the Post-Dispatch in response to an open records request.
Almuttan co-owns and operates several gas stations and convenience stores in north 50度灰视频 and north 50度灰视频 County. He had been one of 35 people charged in a 2017 cigarette and synthetic marijuana trafficking sting. Many of his charges were dismissed in April as part of a a plea agreement. His sentencing is set for July.
According to a news release issued by prosecutors, Reed is accused of accepting $9,000 in cash from John Doe, the business owner, in relation to tax abatement bills. Prosecutors also alleged that Doe gave Reed $6,000 in cash and $3,500 in campaign contributions for Reed鈥檚 help in trying to win city contracts for Doe鈥檚 trucking company and to obtain city certification for the firm as a minority business enterprise.
鈥淒o cash rather than checks?鈥 Doe asked Reed, according to one conversation outlined in the indictment.
鈥淭hat鈥檒l work, yeah,鈥 Reed responded.
Doe then counted out $2,000 with an automatic money counter.
鈥淭hat鈥檚 nice,鈥 Reed said.
鈥淩ight?鈥 Doe responded.
Collins-Muhammad is charged with accepting $7,000 in cash, $3,000 in campaign donations, a new iPhone 11 and a 2016 Volkswagen CC sedan in exchange for his help. He sponsored bills to provide property tax abatement for Doe鈥檚 proposed gas station on Von Phul Street, a measure Doe estimated could save him $20,000 to $30,000 per year and that finally passed the board earlier this year. Collins-Muhammad began working with Doe on the abatement bill in January 2020, when he accepted an initial $2,500 bribe.
鈥淵ou鈥檙e saving me plenty of money,鈥 Doe said then.
鈥淭hat鈥檚 our job,鈥 Collins-Muhammad replied.
Collins-Muhammad also is accused of accepting $3,000 from Doe after setting up a meeting with an unnamed public official who could steer business to the trucking firm. Collins-Muhammad later asked for an additional $2,500 on behalf of the unnamed official but used it to buy a 2008 Chevrolet Trailblazer SUV for himself, the indictment alleges.
鈥榁ery pro-business鈥
The indictment also details a separate scheme related to Doe鈥檚 purchase of a commercial property on Geraldine Avenue in Boyd鈥檚 22nd Ward, also on the north side, from LRA, which owns thousands of vacant lots and abandoned buildings throughout 50度灰视频.
Boyd said the site could be worth more than $100,000, but he wrote a letter to former LRA director Laura Costello in August 2020 supporting Doe鈥檚 $9,000 offer for the property. Doe thanked him.
鈥淢y pleasure,鈥 the alderman replied. 鈥淚鈥檓 very PRO BUSINESS.鈥
But LRA staff responded with a $33,500 counter-offer for the property.
The day before a Dec. 16, 2020, LRA board meeting, Boyd told Doe that he had 鈥減ut a little pressure on them鈥 and the staff was going to recommend the board accept Doe鈥檚 offer of $14,000 for the building.
鈥淪o, um, I talked to LRA and I convinced them that, um, I need them to support what you put down,鈥 Boyd told Doe.
The LRA board approved Doe鈥檚 offer.
Boyd then began working with Doe on a tax abatement for the property, accepting cash for the work. At one point, he advised Doe to 鈥減ump some numbers up鈥 on his estimated construction costs. Boyd filled out the tax abatement application for Doe, writing in that he planned to spend $300,000 on the project when Doe told him he estimated just $125,000.
鈥淣o, that don鈥檛 sound good,鈥 Boyd said in one conversation. 鈥淏ecause, for $125,000 you don鈥檛 need tax abatement.鈥
Boyd, who chaired the committee where many tax abatement bills went through, also helped make sure the Collins-Muhammad bill related to Doe鈥檚 gas station made it through his committee during a February hearing.
鈥淚t鈥檒l get out of HUDZ, then it鈥檒l get to the floor, and only if some of these (expletive) little young white progressives act a (expletive) fool, you know,鈥 Boyd said.
Prosecutors said Boyd accepted from Doe a total of $9,500 in cash and repairs worth $2,344 to two vehicles Boyd owned. Collins-Muhammad received an additional $1,000 cash, the indictment says, for introducing Doe to Boyd.
In the separate insurance-related case, Boyd and Doe are accused of agreeing to split the proceeds of insurance fraud related to a January 2021 accident at Doe鈥檚 used car lot in Jennings.
After Doe鈥檚 insurance company wouldn鈥檛 cover the damage, prosecutors said Boyd falsely claimed that three of the damaged vehicles were owned by a used car company that Boyd owns. Boyd鈥檚 insurance company ultimately rejected the claim, prosecutors said.
Updated at 8:45 p.m. Thursday, June 2.
Read excerpts from the 66-page indictment, including transcripts of communications between the elected officials and "John Doe."
John Collins-Muhammad
Former alderman faces two bribery-related charges and one charge of honest services bribery/wire fraud
Jeffrey Boyd
Alderman faces two bribery-related charges and a separate, two-count wire fraud indictment
Lewis Reed
Longtime president of the 50度灰视频 Board of Aldermen faces two bribery-related charges
鈥淭he voters know me, the voters know the 20-plus years that I鈥檝e served, they know my record. Every major development in this city I鈥檝e led for 20 years.鈥
Aldermanic President Lewis Reed