Former Union auctioneer Stuart B. Millner pleaded guilty Tuesday to federal charges in connection with a scheme to defraud clients and financial institutions out of millions of dollars over five years..
Millner, 77, pleaded guilty to two counts of bank fraud, one count of mail fraud affecting a financial institution, and one count of mail fraud. He faces up to five years in prison as a result of the plea deal. He appeared in front of U.S. District Judge Catherine D. Perry. Sentencing has been set for June 2017.
Millner faces up to five years in prison.
Millner operated the Stuart B. Millner & Associates (SBMA), located off Springfield Avenue in Union.
According to the U.S. Attorney’s Office Eastern District of Missouri, SBMA was engaged in the business of appraising, marketing, liquidating, and auctioning assets from industrial and commercial facilities. SBMA entered into contracts with several clients to conduct auctions to sell their property and collect the proceeds from the sales, for which SBMA would receive a commission.
In the plea agreement, Millner admitted that he caused SBMA to misdirect proceeds from the sales of one client’s property to pay debts owed to previous clients, contrary to SBMA’s representations and agreements.
The amount of loss attributable to Millner’s conduct will be determined by the court at sentencing, but the plea agreement indicates that the government will argue that the losses exceeded $3 million.