Kansas City Businessman and Lawyer Convicted of Contempt in FTC Fraud Case
KANSAS CITY, Mo. – Charles F. Anderson, 81, and his attorney, Robert P. Smith, 80, were convicted of contempt of court on Tuesday, March 24, following a six-day bench trial, according to the U.S. Attorney’s Office for the Western District of Missouri . The court found that both men willfully violated a court order requiring full and truthful financial disclosures in a civil action brought by the Federal Trade Commission (FTC) and the State of Missouri .
The Underlying Fraud Case
Court records indicate the FTC and Missouri alleged that Anderson’s family business engaged in deceptive practices involving sweepstakes and prize mailers, resulting in customers paying over $100 million . As part of the civil case, Anderson was required to provide comprehensive financial disclosures regarding his individual and corporate assets.
Concealed Relationship and Business Ties
Robert P. Smith, a partner at McDowell Rice Smith & Buchanan, P.C., had represented Anderson and his businesses for more than 25 years prior to the FTC case . Although, the court discovered that Smith’s relationship with Anderson extended beyond a traditional attorney-client arrangement, encompassing business partnerships and a close personal friendship.
Court Findings and Contempt Ruling
U.S. District Judge Roseann Ketchmark found that Anderson and Smith deliberately concealed the full extent of their relationship and assets from the FTC . The court stated that the defendants “willfully violated both the letter and the spirit of the financial disclosure” and engaged in “deceptive gamesmanship” to obstruct the investigation . The court emphasized that court orders must be followed and respected, and those who act in bad faith are subject to criminal sanctions.
Case Details
The case is documented as USA v. In Re: Charles Floyd Anderson and Robert Pete Smith, case number 4:23-cm-00008, in the Missouri Western Court . McDowell Rice Smith & Buchanan, P.C. Has not yet issued a statement regarding the conviction.