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2 Coating Company Owners Get Prison

Tuesday, April 9, 2013

Comment | More

Two owners of a western Pennsylvania powder coating company have been sentenced to federal prison for bilking investors out of $1.4 million.

James Michael “Mick” Conde, 65, of Harrison City, PA, was sentenced Friday (April 5) to 18 months in prison, followed by three years of supervised release. He had pleaded guilty in May 2012 in the case.

Conde’s former business partner, Thomas Kemerer, also 65, of Greensburg, PA, was sentenced earlier to two years in prison, followed by three years of supervised release.

Jeannette PA
Canadian2006 / Wikipedia

Precision Powder Coating and Graphics was located in Jeannette, PA, from 2002 until 2005.

Both men were also ordered to make $1.8 million in restitution.

Misused Funds

Conde was president and Kemerer was chief financial officer of Precision Powder Coating and Graphics in Jeannette, PA, from 2002 to 2005, when the company folded, authorities said. The company powder-coated and etched metal parts for vehicles and equipment.

Together, they obtained a $1 million Small Business Administration-backed loan from Sky Bank and a $400,000 loan from a private investor, called K&K Company. Conde and Kemerer told the lenders that the loans were for business equipment, but the two actually used the money for living expenses and personal debts, prosecutors said.

The company defaulted on the Sky Bank loan and never repaid K&K, authorities said.

‘Remorse Knows No Bounds’

Conde pleaded guilty to one count of wire fraud in the scheme, which ran from 2002 to 2003.

“My remorse knows no bounds,” Conde told U.S. District Judge Nora Barry Fischer as he was sentenced. “I have been law-abiding, without even a traffic ticket in 65 years.”

Conde and Kemerer were indicted in May 2011 by a federal grand jury in Pittsburgh on five counts of conspiracy, making false statements in an application for a loan, and wire fraud. The charges carried a total sentence of up to 105 years in prison, a $2 million fine, or both.

Kemerer pleaded guilty last year to the same charge.

Powder coating
zelko.ua

The defendants obtained $1.4 million in loans to buy equipment for their powder coating business, then spent the money on personal expenses and debt, authorities said.

Conde told the judge that he had “little honor or integrity left” and apologized.

Lighter Sentence Rejected

Conde's attorney, Jay Finkelstein, asked Fischer to spare his client a prison term, saying that he is the lone caregiver for his ailing wife and that he would not be able to repay the money if he is in prison, the Pittsburgh Tribune-Review reported.

On the other hand, the sentence was lighter than prosecutors had requested. Assistant U.S. Attorney Shaun Sweeney had asked Fischer to follow sentencing guidelines, which set a range of 33 to 41 months.

The judge said Conde's two daughters would have to “step up to the plate” to care for his wife while he is in prison, the newspaper reported.

“All this time has passed, and there's been no real effort to repay these loans,” Fischer said.

   

Tagged categories: Business management; Business operations; Enforcement; Laws and litigation

Comment from Car F., (4/9/2013, 11:02 AM)

One headline we'll never see: "2 Coating Company Owners Get Prison for endangering worker's safety and lives" In the land of God-Money, killing workers doesn't merit prison, just a fine, but don't you dare to play dirty tricks with God-Money.....sad.


Comment from Bogdan Dana, (4/9/2013, 8:46 PM)

Good Day, I thought that in the USA the justice system works better than somewhere else, but some of the statements here are quite shocking: I never had a traffic ticket in 65 years says one of the culprits....but I stole literally 1.8 million USD. They were ordered to repay 1.8 million USD...is it repayments of 10 bucks a week for the enxt 50 years or is it straight reposession of everything they have under their name or their family name? The Small Business Administartion is also at fault- they should be more careful who they back up for getting loans...unless they guarantee the loan themselves. The prosecutors ask for up to ...105 years in prison and they get not even 2, maybe out on good behaviour in 6 months....this is not right. On the other hand, I live in Australia and I can only comment from the "outside". Best regards, Bogdan Dana


Comment from peter gibson, (1/6/2014, 1:35 PM)

G'Day Yes the legal system is wacked out. Here everything is " allegedly" nobody ever guilty. Culprits lets the world know they did it. No more allegedly please !! Cant stand it !


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