East St. Louis Official Accused in Failed Housing Scheme

EAST ST. LOUIS, Ill. (AP) — East St. Louis’ community development director and a Missouri businessman are facing federal charges that allege bogus documents were used and a bribe paid in a failed $5.6 million affordable-housing project.

Sixty-one-year-old Arthur Johnson of East St. Louis faces three counts in an indictment alleging he accepted benefits in connection with business conducted with the Community Development Block Grant program he heads.

Harold Rosen of Clayton, Mo., faces nine wire-fraud counts related to a contract for the project.

Johnson is accused of accepting cash payments from a representative of Rosen’s Kully Construction while Johnson oversaw public financing for the project.

Messages left Tuesday at Johnson’s home and with his attorney were not returned. Rosen has an unlisted home telephone number.

Copyright 2011 Associated Press

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