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 user 2004-02-26 at 10:24:00 am Views: 71
  • #6240

    Ex-Katun executives plead guilty to fraud

    Three former executives of Katun Corp. pleaded guilty to fraud, including former chief executive Larry Stroup, who agreed to pay $1.5 million in fines and restitution.

    James Moen, former general counsel of the Bloomington-based copier parts company, also pleaded guilty Tuesday to one count of wire fraud and one count of computer-related fraud and agreed to pay $200,000 in fines and restitution.

    Former senior executive Glenn Spitzer will pay $150,000 in penalties for one count of wire fraud.

    Prosecutors haven’t asked for any of the men to receive prison sentences. No sentencing dates have been set.

    Prosecutors say Stroup, 56, of Eden Prairie, was involved in a scheme from about 1985 to 2000 in which bribes totaling more than $25,000 were paid to two Xerox Corp. employees in exchange for access to confidential pricing information. Katun competes with Xerox in the copier parts market.

    As part of his plea agreement on one count of mail fraud, Stroup agreed to pay a fine of $250,000, to make $500,000 in restitution and to give up his claim to $750,000 held in escrow by Katun so the company can use the funds for restitution or fines.

    Moen, 44, of Eden Prairie, was cited for a scheme between 1997 and 2000 to defraud airlines by purchasing reduced fare, extended-stay tickets for business travel but returning on earlier flights. He also was penalized for his part in obtaining pricing information from competitors by accessing password-protected, secured Web sites.

    Spitzer, 55, of Amery, Wis., was cited for his part in the same airline ticketing scheme from 1997 to 1999.

    Last month, Katun as a corporation agreed to plead guilty to 12 counts of fraud and pay $11 million in fines and restitution. Also last month, three other former Katun executives were indicted for allegedly conspiring to pay more than $140,000 in kickbacks to Minolta Business Systems executives to have business steered toward Katun, and paying bribes to buy pricing information from Xerox employees.