Former Missouri House speaker sentenced to prison for COVID relief fraud

JEFFERSON CITY, Mo. (AP) — A former Missouri House speaker was sentenced Monday to 21 months in prison for wire fraud for misusing federal COVID-19 relief funds for personal gain.

Former Republican House Speaker John Diehl received about $380,000 in federal loans for his law firm between 2020 and 2022 through a program designed to help cover operating expenses for businesses affected by the coronavirus pandemic.

But Diehl admitted in his plea agreement in September that he used the money for personal expenses, including country club dues, pool maintenance, home mortgages and vehicle payments for Teslas, Audis and Jeeps. Prosecutors said he used more than half the money to fund his law firm’s defined benefit plan, in which he was the sole participant, and to pay civil settlements related to his time as speaker of the state House of Representatives.

In 2015, Deal resigned as House speaker after the Kansas City Star reported that Deal exchanged sexually suggestive text messages with a college student who was working as a Capitol intern. At the time, Diehl admitted “he made a serious error of judgment in sending the text message.”

In 2023, the Missouri Ethics Commission fined Diehl about $47,000 for campaign finance violations, including charges that he used nearly $6,800 in campaign funds to pay for personal expenses.

Deal had asked a federal court to spare him jail time, noting that he had repaid all pandemic relief funds to the Small Business Administration.

The U.S. Attorney’s Office recommended a sentence of 21 to 27 months in prison. In addition to jail time, the court on Monday ordered Diehl to pay a $50,000 fine.

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Assistant U.S. Attorney Hal Goldsmith said of Deal in a court filing: “Through his education and public office, the defendant has had every privilege and opportunity and, frankly, knew better than to participate in the alleged fraudulent scheme.”

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