Attorney General's News Release

July 30, 2002

Former Sedalia insurance agent pleads guilty to securities fraud; ordered to pay restitution, do community service

Boonville, Mo. — A former Sedalia insurance agent pleaded guilty today in Cooper County Circuit Court to two criminal counts of securities fraud in connection with his defrauding investors by using their money for his personal use rather than investing it.

Richard L. Russell III (DOB - 4/15/38) was sentenced to pay total restitution of $15,000 to three investors he defrauded, was given suspended execution of two five-year concurrent prison sentences, and was ordered to perform 400 hours of community service during each of the next two years. He has been placed on probation and faces prison if he violates the terms of his probation.

Russell was indicted last January by a Pettis County grand jury on the charges at the request of Attorney General Jay Nixon. The indictment charged Russell with convincing former insurance clients to invest in large corporations that Russell said would pay high interest rates. Russell admitted to providing the victims 1099-INT forms representing that the interest had been earned in the tax years 1997-2000 when, in fact, their funds had already been converted by him for his personal use.

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