Thursday, December 21, 2006
The Grand Rapids Press
The former president of CyberNET, who became a star witness in a multi-million-dollar fraud case, was sentenced to 7 1/2 years in federal prison today, a day after charges were filed against three others.
U.S. District Judge Robert Holmes Bell also ordered James Horton to five years of supervised release after he completes his prison term and 500 hours of community service. Bell also ordered Horton to contribute $25 a month in restitution while in prison and $200 a month after his release.
Horton, 55, who pleaded guilty to conspiracy, bank fraud and money laundering, helped federal investigators unravel the high-tech case, prosecutors have said. He could have faced up to 30 years in prison.
Although Horton worked for Barton Watson and Watson's wife, Krista Kotlarz-Watson, he acknowledged keeping CyberNET alive by cooking the books and lying to lenders.
The government has said the scheme was worth as much as $100 million. CyberNET told lenders it also needed money to buy computer servers through a company called TeleServices. Horton has said that TeleServices was a sham.
http://www.mlive.com/news/grpress/index.ssf?/base/news-33/1166716099314370.xml&coll=6
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