Judge Brian Wimes on Tuesday postponed the sentencing for former Springfield businessman Richard T. Gregg.
Speaking at the U.S. District Court of the Western District of Missouri, Wimes said the court’s intent was to continue the hearing. He said a phone conference would be set next week to decide when the case would continue.
“I just want to be careful and not just do the expedient thing, but the right thing,” Wimes said.
Gregg’s attorney, David Mercer, drew attention to the judge that some 15 family members and friends attended court to support Gregg, who appeared handcuffed and wearing a prison uniform.
Speaking to the group outside the court chamber, Mercer said if there was evidence he had never seen before, he would want to evaluate it. He added he didn’t know when or where the case would pick back up.
Assistant U.S. Attorney Gary Milligan declined to comment, referring questions to Don Ledford, public affairs office for the U.S. attorney’s office of the Western District of Missouri.
“The judge held that discussion in chambers, and for that reason, the information is not a matter of public record,” Ledford said of the reason the sentencing was postponed. “We understand the court’s reason for continuing the sentencing hearing.”
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, according to
Springfield Business Journal archives.
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.
Under the terms of the plea agreement entered in April, Gregg could serve six years and six months in federal prison without parole and pay roughly $3.1 million in restitution to the victims.
