News: Colby (Fraud charges/Fiesta Corp, 1983)
Contact: Kathleen E. Englebretson
Email:
kathy@wiclarkcountyhistory.org
Surnames: Outlaw, Brush
----Source: Marshfield News-Herald (22 July 1983)
WAUSAU -- J. Raymond Outlaw, former president of Colby's Fiesta Corp. pleaded
guilty Wednesday in a Federal District Court hearing to two counts of defrauding
the federal government of defense contract money.
During the Madison hearing, Outlaw said he was guilty of mailing improperly
certified requests for progress payments to the Defense Department, and then
using the contract money for his personal use, his attorney said.
Outlaw said he was unaware such actions were improper. His attorney, Thomas
Brush, Madison, said Outlaw took out two promissory notes when he borrowed money
from the corporation and paid more than $1 million back before court proceedings
began.
Outlaw, Hillsboro, North Carolina, was charged with 15 counts of defrauding the
federal government of defense contract money and bankruptcy fraud by a Madison
grand jury in June.
He initially pleaded not guilty to all the charges, but switched the plea for
two counts Wednesday in a plea agreement. The other charges will be dismissed at
the time of sentencing September 20, Brush said.
The maximum sentence is 10 years in prison and a $2,000 fine, and the minimum
sentence is probation.
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