KANSAS CITY, Mo. – A Lathrop man has pleaded guilty in federal court to a $1.7 million fraud scheme related to the sale of his business.
Todd Edwin Rood, 46, of Lathrop, pleaded guilty to one count of loan application fraud before U.S. District Judge Gary A. Fenner on December 6, 2017.
Rood, the former owner of Rood Machine & Engineering (RME), admitted to making false statements to the purchaser’s bank about his assets and liabilities during the sale of his business.
According to the plea agreement, Rood falsified documents in 2015 and 2016 outlining the assets and liabilities of his business in a scheme to defraud RME’s buyers and their financial institution.
The total loss amount resulting from Rood’s criminal conduct is $1,347,608. The purchasers agreed to pay $1,975,208 for Rood’s business and borrowed $1,744,000 from United Community Bank (based in Georgia).
Rood must pay the purchasers $262,000 in restitution for their closing costs and cash infusion into RME, which they made in reliance on the information underlying Rood’s false certification to which he is pleading guilty.
Rood is subject to a sentence of up to 30 years in federal prison without parole, as prescribed by Congress. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Senior Litigation Counsel Gregg R. Coonrod. It was investigated by the FBI.
Key Facts
- State: Missouri
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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