Two Sentenced in Mohawk Fraud Case

Calhoun, GA, July 13, 2007--Two local businessmen pleaded guilty to their roles in a scheme that defrauded Mohawk Industries of several hundred thousand dollars, according to the Calhoun Times.

The newspaper reported that Larry Brown and Terry McDougle, former owners Industrial Supply, entered their pleas Thursday in Gordon Superior Court, each pleading guilty to two counts of conspiracy to commit fraud and seven counts of theft by taking. Several of the counts were merged for sentencing.

Judge Carey Nelson sentenced Brown and McDougle to four years on probation, 100 hours of community service and a $5,000 fine. As part of the plea agreement, they also paid $43,464 in restitution to Mohawk.

According to District Attorney Joe Campbell, Industrial Supply, a Mohawk vendor, issued checks in varying amounts to Ralph Eugene Magnicheri and Terry Wheeler, both former Mohawk employees. Invoices were then sent to Mohawk covering — and in some cases exceeding — the amounts of the checks. The scheme took place between 1997 and 2001.

Magnicheri and Wheeler negotiated separate plea agreements earlier this year.

Magnicheri was sentenced to 10 years, including 12 months in a diversion center and the remainder on probation, and he paid $147,942 restitution.

Wheeler was sentenced to 10 years, including nine to 12 months at a diversion center and the rest on probation, and was ordered to pay $88,267 restitution.

In accepting the plea bargain, Campbell said Brown and McDougle “cooperated fully with the Calhoun police, the IRS and the Department of Corrections.”