Jefferson City man indicted on mail fraud charges
Dale Johnson from Jefferson City was indicted on Wednesday for mail fraud charges as part of a scheme to defraud residents of Rogue Creek in Potosi.
According to the indictment, Johansen owned Johansen Consulting Services LLC and was appointed as the receiver for Rogue Creek Utilities, which provided all sewer, water services and management to Rogue Creek.
The indictment states that Johansen’s duties as receiver was to collect samples and provide proper operation at Rogue Creek, including the oversight and maintenance of the water softener system.
In 2016, the Missouri Department of Natural Resources learned that the water softener system at Rogue Creek was not operational and for at least six months, the residents were receiving well water that was not treated for lead removal.
A day later, the water softener system was brought back on-line so that the water was again being treated to remove lead. The MDNR performed testing on the drinking water which resulted in three of the five samples testing high for lead.
Johansen is accused of issuing invoices to customers for water services and falsely representing to residents of Rogue Creek that their well water was clean, disinfected and safe for human consumption.
He was also accused of issuing monthly invoices for water services, including the removal of lead in their well water, with the knowledge that the well water was not being treated for lead removal.
“EPA’s Criminal Investigation Division takes any allegations involving a public drinking water system very seriously,” said Justin Oesterreich, Assistant Special Agent in Charge of EPA’s criminal enforcement program in Missouri. “We will continue to aggressively investigate and seek prosecution of those whose actions put public health at risk.”
Johansen was indicted by a federal grand jury on four felony counts of mail fraud.
If convicted, Johansen faces up to 20 years imprisonment, a fine of $250,000 or both on each count. Restitution to the victim is also mandatory.
