Judge weighs Sigillito sentence

A federal judge heard from lawyers and victims last week during a sentencing hearing to determine the fate of Martin Sigillito, a St. Louis County attorney and cleric convicted in a $52 million Ponzi scheme earlier this year. But the final chapter is still unwritten.

A federal jury convicted Sigillito, 63, on 20 counts, including wire fraud, mail fraud, conspiracy to commit such fraud and money laundering. He could receive as many as 325 years in prison without parole. Each wire and mail fraud conviction, for example, carries from none to 20 years.

U.S. District Judge Linda Reade, of Iowa, said at the start of the hearing Wednesday that she wouldn’t pronounce sentence immediately but rather will consider the evidence and arguments and make written findings later explaining the sentence she imposes. She said that would be helpful for potential appellate court review and fair to both Sigillito and the victims.

Sigillito appeared for the hearing in a tan prison jumpsuit and handcuffs, which were removed while he sat at the table with his lawyer during the hearing. He quietly responded “Yes, your honor” to the judge’s questions and later listened, without visible emotion, as victims shared their stories.

While Sigillito had a law office in Clayton, his main business in recent years had been seeking out investors for land development deals in Britain. Prosecutors alleged that he and others took money that investors thought would go toward buying English property rights and then selling those rights at a big profit. Instead, prosecutors charged, they used the money to pay for their own lavish purchases and to repay older investors who wanted to cash out.

Prosecutors said Sigillito, also an American Anglican Convocation bishop, collected rare books and coins, joined country clubs and embarked on expensive vacations with his takings from the British investment scheme. Among items in his collection noted during the court hearing was a pottery jar from the Iron Age discovered in the Holy Land and an oil lamp from the era of King Herod the Great.  The government wants him to forfeit that and other property to help repay victims.

Last week, the judge heard from prosecution and defense lawyers on issues such as the total amount of victims’ losses; whether Sigillito abused a position of trust as a lawyer and a bishop; whether he preyed on vulnerable victims; and whether he obstructed justice by lying during trial.

The judge’s rulings on such issues affect whether and how much his sentence could be enhanced under federal sentencing guidelines.

The case’s tentacles reached many in the St. Louis area’s legal community. As one example, Sigillito’s now-estranged wife worked as a law clerk for a federal judge in St. Louis. So Reade was brought in to oversee the criminal case and related civil litigation.

Missouri Bar President Lynn Ann Vogel and her husband, attorney Paul Vogel, became both plaintiffs and defendants in civil litigation over the failed investment dealings. They never faced charges. They personally invested heavily in Sigillito’s projects, and their names turned up on legal documents of other investors.

The Vogels dismissed their suit against Sigillito in August, the same month the Missouri Supreme Court suspended Sigillito’s law license.

Four victims shared their stories at the hearing. Others sent letters to the probation office or the court, the judge said.

Among those who spoke was Richard Aguilar, who said he had known Sigillito since the lawyer was a 4-year-old child. Aguilar and his wife lived next door to Sigillito and his parents in Bellefontaine Neighbors for many years, and the families remained close even through moves and after children had grown, he said.

So when Sigillito talked to him about the British land program while they shared a table at a Sigillito family wedding, Aguilar said he trusted him, as a lawyer, cleric and longtime family friend.

“He assured us it was an extremely safe program,” he said.

The Aguilars lost their $88,000 investment of an IRA, and their retirement income is gone.

“We found we could stay in our home and pay our bills — but just barely,” he said, urging the judge to sentence Sigillito to the longest term possible.

Sharon Cobb spoke about what the financial loss has meant — not just for her but for several family members who also invested: her husband, mother, mother-in-law, stepfather, sister, brother-in-law and ex-husband.

“The cascade effect this has had on my family has been catastrophic,” Cobb said. Whenever she sees her relatives now, she said, she is reminded that her association with Sigillito cost all of them.

Cobb recalled with irony that she once discussed with Sigillito a property in England he was considering purchasing: the Fleece Hotel.

“I don’t think there’s anything Martin Sigillito couldn’t sell to anybody,” she said.

On the flip side, Sigillito’s attorney, Doug Roller, asked the judge to consider a shorter sentence than federal guidelines would recommend. Sigillito’s ex-wife, Beverly Colombo, testified in his support. They divorced in the mid-1970s and have a daughter.

Colombo told the judge that Sigillito isn’t “malicious,” as one victim stated, but rather is naïve and probably got deceived himself in the British land program.

“I don’t think he would intentionally ever hurt anybody,” she said.

The hearing wrapped up Wednesday, but the judge didn’t set the date when she will sentence Sigillito.

Two co-conspirators, Englishman Derek Smith and nonpracticing Kansas lawyer J. Scott Brown, pleaded guilty last year to conspiracy to commit wire and mail fraud and agreed to testify against Sigillito and to forfeit property. The judge sentenced Smith to five years’ probation and Brown to three years in prison. Both also were ordered to pay more than $30 million in restitution.

Investors’ civil lawsuit against Sigillito is pending.

The case is U.S. v. Sigillito, 4:11-cr-00168.