Newspaper article St Louis Post-Dispatch (MO)

Investigator Sought to Join Pyramid Scam Employee of Moriarty Is Her Boyfriend's Son

Newspaper article St Louis Post-Dispatch (MO)

Investigator Sought to Join Pyramid Scam Employee of Moriarty Is Her Boyfriend's Son

Article excerpt

A securities division investigator in Secretary of State Judith K. Moriarty's office tried to participate in an illegal pyramid scheme when he was supposed to be investigating it.

Kyle R. Ebers, the investigator, admitted Tuesday that over a two-month period he had prepared documents for a pyramid scheme that he learned about on the job last year. Ebers, 26, is the son of Harv Ebers, who is Moriarty's boyfriend.

Ebers was an investigator in the division that polices public securities offerings. The division is responsible for protecting Missouri investors from fraud.

Pyramid sales schemes, which are outlawed in Missouri, promise financial rewards to "investors" although no goods are produced. The early "investors" are paid by money paid by later "investors." Eventually, the entire pyramid collapses.

Documents filed in Cole County Circuit Court on Tuesday describe an agreement between Ebers and the Missouri attorney general's office. They show that while Ebers was working in the securities division, he:

Received a complaint on June 9, 1993, about an "Edward L. Green" chain letter scheme and forwarded the complaint to the attorney general's office.

Used a state computer over a two-month period to create documents and reports designed to involve himself in the same pyramid sales scheme.

Rented a post office box in Jefferson City to receive responses to pyramid solicitations under the name of Innovative Concepts, Inc.

No letters were mailed because a securities division employee discovered Ebers' plan.

Attorney General Jay Nixon said Ebers was "a guy who was employed by the state to investigate pyramid schemes, and he decided not only to investigate them but also to look at involvement in doing what he was investigating.

"I think that is a real problem," Nixon said. "It strikes right at the core of what people expect of their government - people investigating something and participating in it. …

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