Booking photo: Bruce Alan Cole
Moberly, MO (KSDK) - The former CEO of Mamtek is being charged in connection with the financial collapse of a proposed artificial sweetener factory in Moberly, Missouri Attorney General Chris Koster and Randolph County Prosecuting Attorney Mike Fusselman said Tuesday.
Koster announced charges against Bruce Cole at the site of the failed Mamtek U.S. Inc. facility. Cole is being charged with stealing and four counts of securities fraud.
The City of Moberly issued $39 million in bonds to help finance the construction of the sweetener factory. Prosecutors and the attorney general allege Bruce Cole lied to city leaders and investors about the project, taking $700,000 from the bond issue and using it for his own personal use.
According to the affidavit, prior to the sale of the Mamtek bonds, Bruce Cole had a Mamtek consultant prepare an invoice from a phony company requesting a payment of more than $4 million for services rendered. The day after this invoice was submitted, Cole had a Mamtek bookkeeper wire $700,000 to his wife, Nanette.
Within 48 hours of receiving the $700,000 wire from Mamtek, Nanette Cole allegedly wrote a check in the amount of $281,046.30 to cash. The Coles made a payment on their mortgage in the amount of $243,018.73 to stave off a scheduled foreclosure of their Beverly Hills home.
The charges come a year after the attorney general joined Fusselman's office to determine if any laws were broken.
Construction on the sweetener facility stopped because Mamtek was unable to pay back the $39 million in bond money.