Matthew E. Burghoff of Mambo Development in Kirkwood, Missouri recently pleaded guilty in a federal court in St. Louis to fraud and improperly removing asbestos from the Ford Building, located in downtown St. Louis at 1405 Pine. He faces up to two and a half years in prison.

A Building in the National Register of Historic Places

Burghoff’s plan was to convert the Ford Building into 26 luxury condominiums with state-of-the-art amenities such as private elevator entrances and biometric security systems, plus gas fireplaces and large terraces. The Ford, a beautiful building, was registered as a member of the National Register of Historic Places in early 2005.

Anonymous Letter about Asbestos Violations

An anonymous letter was sent in 2007 to the St. Louis Air Pollution Control Division complaining about apparent asbestos violations in the Ford as it was being renovated by Mambo Development. Federal and state investigators then found:

• Asbestos debris swept into loose piles on many floors of the building
• 60 bags of asbestos containing materials sitting around

Burghoff’s financing for the renovation project also came under scrutiny, and as federal prosecutor Catherine Hanaway put it, Burghoff was conducting a “rob Peter to pay Paul-type of activity.” His defense lawyer, Ed Dowd, contended that Matthew Burghoff was a “good businessman for many, many years. And this economy really got him.”

Bank Fraud and Clean Air Act Violations

The potential sentence for Burghoff, 45, is 24 to 30 months in a federal prison for bank fraud and violating the Clean Air Act, but his sentence may be reduced if he is able to provide information in an ongoing investigation.

(Source: St. Louis Post-Dispatch)

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