Wednesday, June 2, 2010
Missouri Man Pleads Guilty In $750+K Embezzlement Conspiracy
Larry Covington, 50, of Ash Grove, Missouri, pleaded guilty yesterday to charges he was involved in an embezzlement conspiracy that defrauded the city of Nixa, Missouri, out of $756,010. Specifically, Covington plead guilty to four felony counts, including conspiracy to commit mail fraud, mail fraud, conspiracy to commit money laundering and theft from an organization receiving federal funds. According to prosecutors, Covington, his wife, Paula Covington, 53, and another former Nixa city employee, David W. Griggs of Willard, Missouri, created three phony businesses and submitted a total of 272 fraudulent invoices to the city of Nixa, splitting the proceeds for themselves. According to the 51 count indictment filed against the three co-conspirators in May 2009, their scheme spanned a four and a half year period, from October 18, 2004, through February 25, 2009. Paula Covington plead guilty last month money laundering charges and was sentenced to one year and a day in prison. Griggs plead guilty last August to felony counts including conspiracy to commit mail fraud, theft from an organization receiving federal funds and conspiracy to commit money laundering. He is awaiting sentencing. Larry Covington faces up to 70 years in prison, plus restitution.