Attorney General's News Release

February 19, 2004

St. Louis couple pleads guilty to defrauding state tax credit program; to repay state $300,000

St. Louis, Mo. — A St. Louis couple will repay $300,000 to the state of Missouri after pleading guilty today to criminal charges they defrauded the state of that amount in business tax credits by submitting phony checks and invoices. James Holtrop (DOB - 1/18/52) and his wife, Jill C. Meyerhardt (DOB - 8/3/50), both pleaded guilty to two counts of stealing by deceit brought jointly by Missouri Attorney General Jay Nixon and St. Louis Circuit Attorney Jennifer Joyce.

Holtrop and Meyerhardt admitted they provided bogus checks and invoices to the Missouri Department of Economic Development (DED) as the basis to receive $300,000 in tax credit certificates from the department'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 established businesses moving into economically distressed areas.

Holtrop submitted false checks and invoices to the tax credit program in order to receive $75,000 in tax credits for both 2002 and 2003 for a business he owns, Holtrop Consulting. The $75,000 per year was the maximum amount of tax credits DED would provide under the program. Meyerhardt also submitted false checks and invoices to receive $75,000 in tax credits for 2002 and 2003 for a business she owns, Accousta Control.

"State programs designed to encourage new businesses or bring businesses into areas that need an economic boost cannot be used as a platform for pillage," Nixon said. "Felony charges should serve notice that we will aggressively pursue those who would loot the state treasury in this manner."

Stealing by deceit is a class C felony, punishable by up to seven years in prison. Sentencing will be deferred for both defendants, pending their cooperation in the ongoing investigation.

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