A former leader of the Missouri House has been sentenced to prison after admitting he misused federal pandemic relief money for personal benefit. John Diehl, a former Republican House speaker, received a 21-month sentence on Monday after pleading guilty to wire fraud, according to an Associated Press report.
Loans Meant for Business Costs Used for Personal Spending
Federal prosecutors said Diehl obtained roughly $380,000 in COVID-19 related federal loans for his law firm between 2020 and 2022. The program was designed to help businesses cover operating expenses during the disruption caused by the coronavirus pandemic.
Diehl admitted in a September plea agreement that he diverted the funds to personal expenses. Prosecutors cited spending that included country club dues, swimming pool maintenance, home mortgage payments and vehicle payments for a Tesla, an Audi and a Jeep.
Prosecutors Cite Benefit Plan Funding and Settlement Payment
According to prosecutors, more than half of the loan money was used to fund the law firm’s defined benefit plan, where Diehl was described as the only participant. Prosecutors also said he used funds to pay off a civil settlement connected to his tenure as House speaker.
Prior Political Fallout and Ethics Fine
Diehl previously resigned as House speaker in 2015 after reports that he exchanged sexually suggestive text messages with a college student who served as a Capitol intern. He acknowledged at the time that he had made a serious error in judgment.
Separately, the Missouri Ethics Commission imposed a fine of about $47,000 in 2023 over campaign finance violations. Those allegations included claims that Diehl used nearly $6,800 in campaign funds for personal expenses.
Court Rejects Bid to Avoid Prison
Diehl had asked the court to avoid a prison term, arguing he had already repaid the COVID-19 relief funds to the Small Business Administration. Federal prosecutors recommended a sentence ranging from 21 to 27 months.
In addition to the prison sentence, the court ordered Diehl to pay a $50,000 fine. In court filings, Assistant U.S. Attorney Hal Goldsmith argued that Diehl’s background in law and public office meant he understood the seriousness of the misconduct.
