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Home > Blogs > Butler County News and Issues > Archives > 2009 > October > 14 > Entry
Judge orders $4.1 million restitution for Dynus scandal
U.S. District Judge Sandra Beckwith has ordered Karin Verbruggen and other Dynus Corp. officials to pay nearly $4.1 million in restitution for a bank fraud case involving Butler County government.
Verbruggen was sentenced today, Oct. 14, for her role in the fiber optics company taking out a multi-million dollar loan in Butler County’s name without county approval.
She was the first to be sentenced in the case. Awaiting sentencing are former company owner Orlando Carter, former company president Jim Smith and former county auditor Kay Rogers.
Court records say Beckwith agreed to a reduced sentence requested by the U.S. Attorney’s Office. In addition to the restitution, she was sentenced to five years supervised release, one day imprisonment already served and a $100 assessment.
Verbruggen pleaded guilty in 2006 for her role in the scheme that cost Fifth Third Bank and National City Bank more than $10 million combined in loans based on a bogus deal with the county.
Verbruggen testified in Carter’s trial in August that she forged the name of Rogers and National City Bank executive on documents to mislead people about the loan. She did so at Smith’s urging, she said, and told Smith she was uncomfortable with it.
Verbruggen said during the trial she testified in hopes of getting leniency from the court.
Sentencing for Smith is scheduled Dec. 2. Dates have not been scheduled for sentencing Rogers or Carter. Rogers and Smith pleaded guilty to bank fraud, and Carter was found guilty in trial.
Permalink | Comments (4) | Post your comment | Categories: Dynus
Comments
By taxpayer
October 15, 2009 3:06 AM | Link to this
will kay have to pay?
By Jen
October 15, 2009 8:06 AM | Link to this
Probably not…she will walk just like Karin..Karin hands on forged docs, faxed docs…and continued to conceal the truth. She was in on every move..I guess you can committ a crime, that ends up ruining lives and financials admit your guilt act remorseful and walk away, as long as you work with the authorities to get who they really want even if you embellish your story. They will help you get off. People are out to save themselves not to tell the TRUTH, the FACTS and the will do whatever it takes
By greatly concerned
October 15, 2009 8:29 AM | Link to this
The real shame here is that several “key” Butler County administrators were in on this…not just Kay Rogers. Everyone reading this knows that this is typical Butler County politics…a few job re-assignments, a few early retirements and it will all be “under the rug” with minimal feathers ruffled. When our Butler County GOP Chairman can bilk his own Mom out of a million dollars and smile about it and get patted on the back by his Party…we need help in this County. All the way up to Boehner, we need a sweeping overhaul in our administration and our politics and soon.
By concerned
November 16, 2009 4:31 PM | Link to this
Darn! One day imprisionment for Verbruggen (served)! Will anyone really pay for these crimes? If I were a taxpayer in Butler County, I would dare the County to send me a tax bill. They could not misappropiate any more of my money.