Press Release
Plea Agreement: Lenexa Company Lost More than $685,000 to Fraud
For Immediate Release
U.S. Attorney's Office, District of Kansas
KANSAS CITY, KAN. – A North Carolina man pleaded guilty today to a fraud in which a Lenexa company he worked for spent more than $685,000 to buy electrical and wire cable that the man sold to another company and pocketed the money, U.S. Attorney Stephen McAllister said.
Coe Downing, 48, Charlotte, N.C., pleaded guilty to one count of mail fraud. In his plea, he admitted the crime took place while he worked as a project manager for Lenexa-based Wachter, Inc. Downing placed orders for electrical and wire cable from Anixter, Inc., one of Wachter’s suppliers. Wachter paid for the materials by sending a check to Anixter in Texas. Meanwhile, Downing sold the cable to another company, Cabling Systems Supply, Inc. (CSSI) and kept the money.
In the plea agreement, Downing agreed to pay restitution of $25,000 to Wachter, Inc., and $660,323 to Wachter’s insurer, Federal Insurance Company.
Sentencing is set for April 21. He could face a penalty of up to 20 years in federal prison and a fine up to $250,000. The U.S. Postal Inspection Service – Office of Inspector General, investigated. Assistant U.S. Attorney Chris Oakley is prosecuting.
Updated January 28, 2020
Topic
Financial Fraud
Component