Posted: Jul 28, 2012 7:09 AM by Associated Press
SPRINGFIELD (AP) - The president of two southwest Missouri engineering firms has been sentenced to slightly more than five years in prison for a $6.7 million bank fraud scheme.
The U.S. Attorney's office says James Ledbetter must also pay $4.7 million to Bancorp South and $1.5 million to the IRS under the sentence he received Friday.
The 67-year-old Ozark resident pleaded guilty in March to bank fraud, money laundering and failure to pay taxes.
Prosecutors said Ledbetter signed an agreement in 2001 to sell the bank his companies' accounts receivable in exchange for operating cash. The bank collected money owed to Ledbetter's firms on various contracts and kept part of the payments.
Ledbetter admitted inflating the amounts due on dozens of contracts and in some cases fabricating invoices for work never done.