Former Snack Food Company Executive Sentenced In Fraud Case
Memphis, TN – Charles David Nichols, 48, of Memphis, Tennessee, was sentenced on Monday, May 7, 2012, by United States District Court Judge Samuel H. Mays, Jr. to serve 33 months in prison, followed by three years supervised release, announced Edward L. Stanton, III, United States Attorney for the Western District of Tennessee. Nicholas was also ordered to pay $431,983.79 in restitution.
Nichols pled guilty on November 23, 2011, to bank fraud in violation of Title 18 U.S.C. Section 1344, in connection with a scheme to defraud his former employer Brimhall Foods Company, Inc., known locally as Brim’s Snack Foods, of approximately $425,000. According to the criminal information filed in United States District Court, and the statement of facts made by Assistant United States Attorney Carroll L. Andre, III, to Judge Mays, Nichols was employed as the Vice President of Finance at Brim’s Snack Foods, and had authority to issue and co-sign checks drawn against Brim’s checking account at First Tennessee Bank. Between May 2003 and June 2011, Nichols engaged in a fraudulent scheme to divert approximately $425,000 by forging the required signatures of other Brim’s executives on approximately 144 checks, which Nichols either cashed or deposited to personal accounts he maintained at First Tennessee and Wachovia Banks.
This case was investigated by a team that included members of the United States Secret Service, and the Economic Crimes Task Force. The case was prosecuted by Assistant United States Attorney Carroll L. Andre III.