Attorney General's News Release

November 3, 2004

Former Stevens Financial Group accountant pleads guilty; will cooperate in pending criminal cases related to SFG

Springfield, Mo. —Douglas A. Hamilton, the former accountant for the Springfield-based Stevens Financial Group (SFG), pleaded guilty today in Greene County Circuit Court to perjury in connection with defrauding investors. Hamilton also entered an Alford plea to a charge of making a false or misleading statement, in connection with the sale of securities; that plea acknowledges the state had sufficient evidence to obtain a conviction.

The office of Attorney General Jay Nixon is handling the prosecution of Hamilton and other SFG officials.

Hamilton admitted to perjury by lying under oath in testimony before the Greene County grand jury. He falsely testified he had sold Eagle Acceptance Corp. to another person when he had not. The charge of making a false or misleading statement related to documents Hamilton filed with the commissioner of securities that contained false signatures and dates.

Under the terms of the plea agreement, Hamilton must provide his complete cooperation to state and federal authorities regarding his knowledge of individuals and companies related to SFG, including providing testimony in trials or other legal proceedings. At sentencing, the state has agreed to not seek a sentence of more than four years in prison concurrent on each of the two counts. If Hamilton is placed on probation, he will be required to pay restitution as determined by the court.

In exchange for the guilty plea, the state will dismiss the other eight counts that were being prosecuted against Hamilton after he is sentenced. Sentencing is scheduled for May 13 in Springfield.

Following a trial in Cass County in September, SFG President Clarence Stevens was convicted on five counts of making a false or misleading statement. He is scheduled to be sentenced on Nov. 17. Two other officials connected with SFG, Marc Braun and Patrick Robarge, have yet to stand trial on charges being prosecuted by Nixon.

The Federal Bureau of Investigation, the U.S. Department of Justice, the Internal Revenue Service, the Office of the Inspector General for the FDIC, and the Missouri Secretary of State's Office all were instrumental in the case, Nixon added.

Inquiries from consumers should be directed to consumer@ago.mo.gov or 1-800-392-8222 (from within Missouri) or 573-751-3321 (outside Missouri).

All media inquiries should be directed to Press Secretary John Fougere.

E-mail      Phone: 573-751-8844         Fax: 573-751-5818