Ex-engineering firm CEO charged with $6.7M bank fraud

Former Springfield engineering firm CEO James E. Ledbetter has been charged in a federal indictment, surrounding a $6.7 million bank fraud scheme, money laundering and failure to pay taxes.

Ledbetter, 65, of Ozark, was charged in the 14-count indictment by a federal grand jury in Springfield on Oct. 6, which was sealed and made public Oct. 14 following Ledbetter's arrest and initial court appearance, according to a news release from Beth Phillips, U.S. attorney for the Western District of Missouri.

Ledbetter was the president and CEO of the now defunct engineering and architectural firms Ledbetter, Toth & Associates Inc., Ledbetter, Corner & Associates Inc., and Ledbetter & Associates Inc., the release said.

The indictment alleges that, from 2003-2007, Ledbetter sold The Bank - which later merged with Signature Bank and is now Bancorp South - $6.7 million worth of falsely-inflated, fraudulent accounts receivable.

Under an agreement with The Bank, Ledbetter's accounts receivables were purchased for a percentage of the total amount due by issuing internal credit to the Ledbetter business account at the bank. The Bank collected payments from the customers listed on the accounts receivable, the release said.

Ledbetter also allegedly sold receivables prior to having performed the services listed on the invoices and when no services were actually set to be performed. The indictment additionally states Ledbetter sometimes fabricated entire invoices to make them look legitimate.

Ledbetter is charged with two counts of bank fraud, three counts of money laundering, six counts of structuring transactions to avoid federal reporting requirements and three counts of failing to pay Internal Revenue Service taxes deducted from employees' paychecks.

The case is being prosecuted by Assistant U.S. Attorney Robyn McKee and was investigated by the FBI and IRS-Criminal Investigation.

Ledbetter, Toth & Associates was formed in 1978 and changed to Ledbetter & Associates in April 2003 before merging with Corner & Associates later that year to form Ledbetter, Corner & Associates. Ledbetter, Corner & Associates was administratively dissolved in 2008, according to the Missouri Secretary of State Web site.[[In-content Ad]]