Show-Me State Times

St. Louis – The owner of a steel company in Hazelwood, Missouri, Theodore J. "Ted" Stegeman, 60, has pleaded guilty to committing fraud during a repair project for a Mississippi River lock and dam. According to Stegeman's plea agreement, he admitted to falsely claiming that a part manufactured by his company passed safety tests during the project.

Stegeman's company, Industrial Steel Fabrication LLC (ISF), was a subcontractor on a project to repair Lock and Dam No. 25 on the Mississippi River. The government emphasized the critical nature of the components fabricated by ISF, stating that if a span weld were to fail, it could lead to catastrophic consequences including fatalities and significant damage to infrastructure.

Stegeman's fraudulent actions led to a total loss of $238,059, representing the cost of removing, testing, and re-installing the faulty components. He is scheduled to be sentenced on September 12 and could face up to 20 years in prison, a $250,000 fine, or both.

The Defense Criminal Investigative Service and the Department of the Army Criminal Investigation Division conducted the investigation, with Assistant U.S. Attorney Kyle Bateman prosecuting the case.

The contractor involved in the project installed the faulty components based on false information provided by Stegeman, highlighting the serious implications of his fraudulent behavior.