KC Lawyer Convicted in $100M Sweepstakes Fraud Case

A federal judge found Pete Smith guilty of criminal contempt, while a second attorney, John Kennyhertz, was acquitted.

Mar. 29, 2026 at 10:07am

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A federal judge found longtime Kansas City attorney Pete Smith guilty of criminal contempt for concealing financial details during a sweepstakes fraud case that bilked consumers out of more than $100 million. A second attorney, John Kennyhertz, was tried on related charges but acquitted after the government failed to prove he willfully violated a court order.

Why it matters

The case highlights ethical concerns within the legal community, as the judge called Smith's conduct "unprofessional, unethical... and a poor role model." The outcome could impact whether Smith faces disbarment by the Missouri Supreme Court.

The details

C. Floyd Anderson and his relatives collected over $100 million from consumers through mass-mailed sweepstakes and puzzle contests of "questionable legitimacy," according to the FTC. U.S. District Judge Roseann Ketchmark found Smith, 80, guilty of criminal contempt for draining a joint bank account, concealing a business venture, and withholding documents. Prosecutors alleged Kennyhertz kept routing hundreds of thousands of dollars through frozen accounts, including fees to his own firm, but he was found not guilty.

  • On March 16, 2026, Judge Ketchmark found Pete Smith guilty of criminal contempt.
  • In 2025, John Kennyhertz was found not guilty of related charges.

The players

Pete Smith

An 80-year-old longtime Kansas City attorney who was found guilty of criminal contempt in the $100 million sweepstakes fraud case.

John Kennyhertz

A Kansas City attorney who represented the son-in-law of the main perpetrator, C. Floyd Anderson, and was found not guilty of related charges.

C. Floyd Anderson

The main perpetrator who, along with his relatives, collected over $100 million from consumers through fraudulent sweepstakes and puzzle contests.

William Graham

The son-in-law of C. Floyd Anderson, who was represented by John Kennyhertz.

Roseann Ketchmark

The U.S. District Judge who found Pete Smith guilty of criminal contempt.

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What they’re saying

“Pete Smith's conduct amounted to a 'picture of deception' and was 'unprofessional, unethical … and serves as a poor role model for the legal community.'”

— Roseann Ketchmark, U.S. District Judge

“We were surprised and disappointed by the verdict and strongly disagree with the decision.”

— Pete Smith's firm

What’s next

Whether Pete Smith will be disbarred is up to the Missouri Supreme Court.

The takeaway

This case highlights ethical concerns within the legal community and the potential consequences, including disbarment, that attorneys can face for unethical conduct related to fraud cases.