J. C. Morrow, 69, of Clarksville, Tennessee, pleaded guilty yesterday, in U.S. District Court, to mail fraud in connection with a scheme to defraud his former employer, Saga Communications of Tuckessee, LLC, doing business as the Five Star Radio Group, announced Jerry E. Martin, U.S. Attorney for the Middle District of Tennessee.

            Between April 18, 2001 and July 21, 2004, Morrow was employed full-time as a chief engineer by Five Star Radio.  During that time, Morrow submitted false quotes and invoices that he prepared, purporting to be issued to Five Star Radio by a building contracting business in Clarksville, Tenn. and by a radio broadcasting equipment vendor based in North Carolina.  Morrow also was paid commissions by the North Carolina radio broadcasting equipment vendor on equipment that Morrow ordered for Five Star Radio, without the knowledge of his employer. Those false invoices and undisclosed commissions resulted in payments of approximately $173,473.77 by Five Star Radio, with almost all of the proceeds paid on the false invoices being retained by Morrow.  In one instance, a Digital Console, costing $8100.00 and paid for by Five Star Radio, was installed in a recording studio operated by Morrow’s son, without the knowledge of Five Star Radio.  
                                                                        
Morrow’s sentencing is scheduled for February 24, 2012 at 2:30 p.m. and he is expected to face a sentence of up to 21 months in prison, followed by three years of supervised release, a fine of $250,000, and restitution in the amount of $173,473.77.

This case was investigated by the Federal Bureau of Investigation.  The United States was represented by Assistant United States Attorney Byron Jones.

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