BENTON - Former federal judge Michael Reagan severely sentenced former East St. Louis Township Supervisor Oliver Hamilton to deter corruption; but according to an investigation by the FBI, a five year prison sentence didn’t deter Hamilton from possibly violating supervision terms.
U.S. Attorney Rachelle Crowe moved in August to revoke Hamilton's release, alleging he violated conditions of supervision that should have kept him away from other people’s money after he was previously convicted for embezzling funds.
District Judge Staci Yandle set a hearing for Oct. 24.
Assistant U.S. Attorney William Coonan advised Yandle in June that the Federal Bureau of Investigation was investigating Hamilton.
Yandle granted Hamilton permission last year to work for an entity that received public funds if he limited his employment to physical labor or acts requiring no discretion or spending authority.
According to Coonan, Hamilton worked for the Superior Construction landscaping business of his son Oliver Junior.
Coonan claimed witnesses told FBI agents that Hamilton offered and accepted bids and contracts from individuals.
He claimed the business had contracts throughout St. Louis and East St. Louis.
“These contracts should not have been received by Mr. Hamilton,” he wrote.
Coonan claimed Hamilton was reminded in February that he was to do labor work only.
Prior to his conviction, Hamilton took the job of township supervisor by appointment in 2011, and voters elected him for a full term in 2013.
The township provides general assistance, and it has operated social programs.
It ran deficits of $2.5 million in 2013 and $2.7 million in 2014.
The deficit approached $3 million in 2015, and the township borrowed $200,000 to meet operating expenses.
Prosecutors discovered in 2016 that the township’s credit card mixed public and private spending so thoroughly that they couldn’t tell how much Hamilton stole.
Hamilton retained former appellate court judge Clyde Kuehn of Belleville, who negotiated a plea admitting wire fraud for $40,001 in exchange for a sentence of a year and a day.
Reagan accepted the plea but ripped up the sentence.
He found Hamilton’s crime more serious than sentencing guidelines suggested for a person who stole repeatedly on a regular basis for five years.
He also found Hamilton responsible for ensuring integrity of township operations.
“Instead of safeguarding assets, he stole them to support his lifestyle and to further his business interests,” he wrote.
Reagan found a memo line on checks suggested he used township funds to pay child support.
He found credit card statements and receipts showed Hamilton spent considerable amounts on equipment for construction businesses he ran.
Hamilton received $60,000 a year from the township and operated a construction company for which he reported about $60,000 per year in net income.
Additionally, Hamilton’s position on the St. Clair County Board paid $19,000 per year.
Reagan found that the average income in East St. Louis was $19,520.
“There is a great risk that with the rampant public corruption in the East St. Louis area, residents will become apathetic and will view corrupt leadership as the norm, making it more difficult to detect, investigate, and prosecute corruption,” he wrote.
Reagan found he couldn’t place the weight of all the woes of East St. Louis on Hamilton’s shoulders, but crimes such as his contributed to an atmosphere of corruption.
“As long as officials in East St. Louis believe that the benefits gained by corruption outweigh the risks, they will continue to engage in crooked and deceitful behavior and East St. Louis will continue to decline,” he wrote.
Reagan wrote that public corruption undoubtedly increases other forms of crime in a community.
“At least ten public corruption related sentences were handed down in this district while Hamilton was township supervisor,” he wrote.
Hamilton reacted by sending a text message to his supporters stating, “I am sure the judge is going to use all the lies the newspaper has printed to give me a maximum sentence.”
“I guess I have to pay for going against the Belleville political party,” he wrote.
“I need as many citizens of the area to show the judge the city supports me,” he added.
Supporters showed up for Hamilton's sentencing, and Kuehn hinted at racial bias.
Reagan asked prosecutor Norm Smith about the text message, and Smith said Kuehn called him and told him Hamilton said one of his detractors sent it.
Reagan put Hamilton under oath, and Hamilton said he sent it.
Reagan said, “I am willing to have people tell me I am stupid, I am lazy. I can accept that.”
“What I can't accept is my integrity being impugned,” he said.
“When you have a lifetime appointment like I do, you are liberated,” he added.
“I don't care about the color of his skin. I don't care about his religion or political party,” he continued.
Reagan sentenced Hamilton to five years in prison and three years on supervised release.
He said he’d like to impose additional terms and conditions of supervised release.
“I know that he can't have public employment,” he said.
“I was going to impose this condition, that absent court approval the defendant shall not work or volunteer for any entity that receives in whole or in part public funds,” he added.
“The court is not likely to approve any such employment unless it involves only physical labor or ministerial acts not requiring discretion or spending authority,” he continued.
He imposed no fine but ordered Hamilton to pay the township $40,001 in restitution.
Hamilton appealed the sentence, and Seventh Circuit judges affirmed Reagan in 2018.
They found Hamilton’s transactions, the township’s financial problems, and corruption in East St. Louis relevant to the nature and circumstances of the offense.
The Bureau of Prisons approved home confinement for Hamilton in 2020 and released him on supervision in September 2021.
In November 2021, he sent Yandle a letter asking permission to work for his son.
“My son is contracted from time to time by various entities such as the city of St. Louis, the city of East St. Louis and East St. Louis School District 189, to name a few,” he wrote.
He wrote that his probation officer advised him to get permission from the Court to make sure he was in line with supervised release.
The government didn’t object and Yandle granted the motion.
Hamilton moved for early termination of supervision this March, stating he abided by all guidelines, fulfilled all conditions, and made restitution.
Prosecutor Coonan filed an opposition brief disclosing the federal investigation.
He recommended that the probation office continue to monitor Hamilton in the community due to recent events, “to ensure he does not further pose a threat to the community.”
Yandle set a hearing in August but vacated the date when the government petitioned to revoke supervised release.
U.S. marshals brought Hamilton to an initial appearance before Magistrate Judge Gilbert Sison on Aug. 21.
Public defender Kim Freter appeared for Hamilton, who said he would retain private counsel.
Jessica Koester of Edwardsville entered an appearance for him on Sept. 19.
The clerk terminated Clyde Kuehn as Hamilton’s counsel on that date, although he hadn’t moved to withdraw.
Kuehn hadn’t moved to withdraw as of Oct. 16.