Federal Jury Returns Guilty Verdicts In United States V. Gary E. Peel

Randy G. Massey, Acting United States Attorney for the Southern District of Illinois, announced today that on March12, 2007, a federal jury in East St. Louis, Illinois, convicted GARY E. PEEL, age 63, of Glen Carbon, Illinois, of one count of Bankruptcy Fraud, one count of Obstruction of Justice, and two counts of Possession of Child Pornography, following an eight day trial.

Sentencing has been scheduled for June 25, 2007, in the United States District Court in East St. Louis. Bankruptcy Fraud carries with it a potential maximum penalty of 10 years imprisonment; the Obstruction of Justice count carries a potential maximum penalty of 20 years imprisonment; each count of Possession of Child Pornography carries a maximum potential penalty of 5 years imprisonment. In addition, each count carries a possible fine of $250,000.

The evidence presented at trial proved that PEEL attempted to use thirty-two year old sexually explicit photographs of a minor relative of his ex-wife to coerce his ex-wife, who was a creditor in bankruptcy proceedings filed by PEEL, to enter into a settlement which would have resulted in the dismissal of the bankruptcy action.

The investigation was conducted by the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorneys Jennifer Hudson and Kevin Burke.