Two Kansas City men, Charles Floyd Anderson and his attorney Robert Pete Smith, were found guilty of criminal contempt by U.S. District Judge Roseann Ketchmark on Mar. 24 after a six-day bench trial.
The case highlights the importance of complying with court orders and the consequences for those who do not. The finding stems from an underlying civil action brought by the Federal Trade Commission (FTC) and the State of Missouri, which alleged that consumers paid over $100 million in response to deceptive sweepstakes and prize mailers distributed by a family business enterprise built by Anderson.
Smith, a partner at McDowell Rice Smith & Buchanan, P.C., had represented Anderson for more than 25 years before the FTC case began. As part of that case, both were ordered to provide complete financial disclosures. According to court findings, “Attorney Smith and Anderson willfully violated both the letter and the spirit of the financial disclosure required by the district court in the FTC Case… Orders duly entered by a district court must be followed and respected. Persons or parties who do not do so, and who instead opt for willful deceptive gamesmanship or otherwise act in bad faith in complying with a district court’s orders are subject to criminal sanction.” The Court further stated that “Defendants’ conduct illustrates a picture of deception and sanitization of particular relationships and assets from the FTC’s view.” Ultimately, both men were adjudged guilty as charged.
The prosecution was handled by Assistant U.S. Attorneys Patrick D. Daly and Matthew N. Sparks along with Special Assistant U.S. Attorney Amanda K. Hanson; it was investigated by the Federal Bureau of Investigation.
The U.S. Attorney for the Western District of Missouri supports community outreach programs aimed at issues such as violent crime and drug trafficking according to its official website. The office has locations in Kansas City, Jefferson City, and Springfield according to its official website, is affiliated with the Department of Justice according to its official website, handles federal prosecutions across 66 counties according to its official website, covers jurisdiction from Iowa to Arkansas borders according to its official website, and collaborates with law enforcement partners at various levels according to its official website.
This verdict underscores federal authorities’ ongoing efforts against fraud-related offenses within their jurisdiction.
