Lathrop man pleads guilty to $1.7 million fraud scheme
KANSAS CITY (AP) — A 46-year-old Missouri man has pleaded guilty to a $1.7 million fraud scheme involving the sale of his business.
Federal prosecutors announced Friday that Todd Edwin Rood, of Lathrop, pleaded guilty to loan application fraud. Rood acknowledged that he made untrue statements about his assets and liabilities while trying to sell his business, Rood Machine & Engineering.
The purchasers agreed to pay $1.9 million for Rood's business and borrowed $1.7 million. Prosecutors say the true value of the business did not support that loan amount.
Restitution will be determined at Rood's sentencing hearing or at a restitution hearing.