Businessman Gregg sentenced to 6.5 years in prison

Judge Brian Wimes today sentenced former Springfield businessman Richard T. Gregg to six and a half years in prison for fraud.

Wimes also ordered Gregg, 59, to pay $3.1 million in restitution to victims. After five years in prison, the judge said Gregg would have the opportunity for supervised release.

“I have no one to blame but myself,” Gregg said in court. “All the decisions made were mine and mine alone.”

After the sentencing, debate focused on whether Gregg should be allowed to self-surrender prior to the start of his prison sentence.

Gregg’s attorney, David Mercer, argued his client was not a flight risk and did not pose economic or physical danger to the public. Citing news reports, Mercer said Gregg had become “literally and publicly radioactive.”

“There’s not a single businessperson in southwest Missouri who would touch Gregg with a 10-foot pole,” Mercer said of the government’s claim Gregg could be an economic risk.  

Assistant U.S. Attorney Randall Eggert played a recording of Gregg speaking to his wife in prison.

“Have the boys take care of the people who put me here,” Gregg said on the tape.

Mercer argued Gregg was referring to his sons, who are both attorneys, and that they should pursue proper legal action to get him released. Eggert interpreted the statement as intending harm on others. He also said Gregg was a flight risk because of his gambling addiction.

Wimes denied Gregg’s request to self-surrender. Gregg’s sentence is effective immediately.

Prior to being indicted in early 2013, Gregg worked as an investor and property owner, as well as a bank shareholder.

In April, Gregg pleaded guilty to selling collateral that secured a $2 million loan from Great Southern Bank in February 2009. He kept the profits, resulting in the bank losing $1.35 million.

Southwest Community Bank, which failed in May 2010, lost more than $1.55 million on Gregg’s personal line of credit and from a commercial real estate fraud scheme. Gregg had been a shareholder and a director of the bank.

Gregg also admitted he defaulted on two separate $400,000 loans, resulting in Great Southern losing another $129,644 and Metropolitan National Bank losing $17,221. For the loans, he used collectible automobiles as collateral but sold the vehicles without paying back the loans.

After being found guilty in February 2013 for bankruptcy fraud related to his company, 1717 Market Place LLC, Gregg, while on bond, also filed a fraudulent claim attempting to have roughly $45.8 million in unsecured debts dismissed from his personal bankruptcy case.