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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