Charges Filed Against Mamtek CEO

6 years 1 month 1 day ago Tuesday, September 18 2012 Sep 18, 2012 Tuesday, September 18, 2012 10:12:00 AM CDT September 18, 2012 in News
By: Mychaela Bruner
loading

MOBERLY - Missouri Attorney General Chris Koster and Randolph County Prosecuting Attorney Mike Fusselman charged Mamtek CEO Bruce Cole Tuesday with stealing and four counts of securities fraud. 

Cole allegedly submitted an invoice for $4,062,500 for the services of "Ramwell Industrial, Inc." Investigators found that Ramwell was never incorporated, never had employees, never owned any property and never provided anything to Mamtek. The day after the invoice was submitted, Cole allegedly told a Mamtek bookkeeper to wire his wife $700,000. Within 48 hours of receiving the wire transfer, Cole's wife cashed a check she wrote for $281,046.30 and then the Coles made a payment on their mortgage of their Beverly Hills home in the amount of $243,018.73. Shortly after the payment was made, the scheduled foreclosure of the Coles's home was canceled.

"The failure of the $39 million investment in Moberly was a tragedy for that community," Koster said in a news release. "Today we have alleged that Mr. Cole deceived the city and the investors about the project and unlawfully profited from the investment by taking at least $700,000 from the bond money for his own personal use."

The criminal complaint filed alleges that Cole: 

• Committed stealing by deceit by appropriating at least $25,000 for his own personal use;
• Committed securities fraud by using Ramwell as an artifice to defraud by using the name "Ramwell" to obtain bond disbursements from Mamtek U.S. when he actually planned to use the funds for other purposes, including the payment of $700,000 to Cole's wife for personal use;
• Represented to the issuer of the bonds that Mamtek's manufacturing processes would neither require nor produce any hazardous substances, when Mamtek's manufacturing processes called for the use of either triphosgene or thionyl chloride, both of which are hazardous chemicals,
• Represented to the issuer of the bonds that Mamtek operated a fully functional sucralose production facility in China, when that plant was not, at that time, producing sucralose, and;
• Represented to the issuer of the bonds that just four to six months would be needed to build the facility and make it fully operational, when Cole believed it would take longer to make a production facility functional in the United States.

Cole could face up to 15 years in prison for the stealing charge. Cole also faces up to ten years in prison and up to a $1 million fine on each of the four counts of securities fraud. 

Mamtek was billed as an artificial sweetener plant and promised 600 jobs to Moberly when the projected was announced in 2010. Construction of the plant halted last year after Mamtek was unable to make payments on $39 million of bonds issued by the city.

Attorney General Chris Koster says, "I think that when a community of Moberly's size has an incident like this take place, it actually affects all small communities throughout the state because it makes the investments in those small communities... it adds risks.  It calls into question that the security of different investments all over the state of Missouri. So, at various levels, I think there are a lot of victims."

More News

Grid
List
ST. LOUIS (AP) — A restored St. Louis prairie of native grasses and flowers is in bloom, but the nature... More >>
4 hours ago Saturday, October 20 2018 Oct 20, 2018 Saturday, October 20, 2018 8:50:24 AM CDT October 20, 2018 in News
COLUMBIA - Sen. Claire McCaskill spoke about health care in Columbia on Friday at Laborers Local 955, as part of... More >>
17 hours ago Friday, October 19 2018 Oct 19, 2018 Friday, October 19, 2018 7:35:00 PM CDT October 19, 2018 in News
COLUMBIA - After realizing the underrepresentation of Hispanic business owners in mid-Missouri, three Hispanic professionals established a group of 12... More >>
19 hours ago Friday, October 19 2018 Oct 19, 2018 Friday, October 19, 2018 5:49:00 PM CDT October 19, 2018 in News
COLUMBIA - This is the last week of the regular season and it's a cold one. Our game of... More >>
19 hours ago Friday, October 19 2018 Oct 19, 2018 Friday, October 19, 2018 5:20:00 PM CDT October 19, 2018 in Friday Night Fever
COLUMBIA - Two Midwest companies issued separate food recalls this week for bacterial contamination concerns. Hy-Vee said its supplier,... More >>
20 hours ago Friday, October 19 2018 Oct 19, 2018 Friday, October 19, 2018 4:53:00 PM CDT October 19, 2018 in News
CAMDEN (AP) — Toxicology tests show that a boater was drunk when he slammed into a bluff at Missouri's Lake... More >>
21 hours ago Friday, October 19 2018 Oct 19, 2018 Friday, October 19, 2018 3:41:35 PM CDT October 19, 2018 in News
COLUMBIA - The Legion of Black Collegians and the FourFront Marginalized Student Council held a solidarity walk Friday to show... More >>
21 hours ago Friday, October 19 2018 Oct 19, 2018 Friday, October 19, 2018 3:39:00 PM CDT October 19, 2018 in News
JEFFERSON CITY - The Missouri State Medical Association (MSMA), along with multiple medical associations, reaffirmed their opposition to the three... More >>
22 hours ago Friday, October 19 2018 Oct 19, 2018 Friday, October 19, 2018 2:50:00 PM CDT October 19, 2018 in News
JEFFERSON CITY - For the fourth consecutive year, Project Homeless Connect provided services Friday for people who are experiencing homelessness... More >>
22 hours ago Friday, October 19 2018 Oct 19, 2018 Friday, October 19, 2018 2:39:00 PM CDT October 19, 2018 in News
DES MOINES, Iowa (AP) — The Mega Millions jackpot has soared to an estimated $1 billion, as the second-largest lottery... More >>
1 day ago Friday, October 19 2018 Oct 19, 2018 Friday, October 19, 2018 12:10:00 PM CDT October 19, 2018 in News
JEFFERSON CITY - Police want the public's help finding a man who allegedly ran from a traffic stop after hurting... More >>
1 day ago Friday, October 19 2018 Oct 19, 2018 Friday, October 19, 2018 11:42:00 AM CDT October 19, 2018 in News
COLUMBIA - Two MU residence halls and an atrium were officially dedicated on Friday honoring three former MU students. Lucile... More >>
1 day ago Friday, October 19 2018 Oct 19, 2018 Friday, October 19, 2018 10:09:00 AM CDT October 19, 2018 in News
WASHINGTON (AP) — Just 1 in 4 people thinks Brett Kavanaugh was completely honest when as a Supreme Court nominee... More >>
1 day ago Friday, October 19 2018 Oct 19, 2018 Friday, October 19, 2018 9:58:13 AM CDT October 19, 2018 in News
(CNN) -- The US moved closer to acknowledging the role of Saudi Arabia in journalist Jamal Khashoggi's apparent death as... More >>
1 day ago Friday, October 19 2018 Oct 19, 2018 Friday, October 19, 2018 9:36:16 AM CDT October 19, 2018 in News
RANDOLPH COUNTY - MoDOT announced they will close Randolph County Route CC from Route FF to Route K on Monday,... More >>
1 day ago Friday, October 19 2018 Oct 19, 2018 Friday, October 19, 2018 8:30:00 AM CDT October 19, 2018 in News
FLORISSANT (AP) — Authorities have arrested a suburban St. Louis student after finding a loaded gun and a razor inside... More >>
1 day ago Friday, October 19 2018 Oct 19, 2018 Friday, October 19, 2018 7:46:15 AM CDT October 19, 2018 in News
ST. CHARLES, Mo. (AP) — A Missouri man has been sentenced to life in prison in the 1984 beating death... More >>
1 day ago Friday, October 19 2018 Oct 19, 2018 Friday, October 19, 2018 7:10:00 AM CDT October 19, 2018 in News
KANSAS CITY, Mo. (AP) — A Kansas City doctor has been sentenced to a year in federal prison for his... More >>
1 day ago Friday, October 19 2018 Oct 19, 2018 Friday, October 19, 2018 6:51:00 AM CDT October 19, 2018 in News
Columbia, MO
Broken Clouds 61°
1pm 59°
2pm 60°
3pm 61°
4pm 59°