Alabama Man Agrees to Fraud Plea
Jun. 26, 2005
BIRMINGHAM, Ala. (AP) _ The former head of a textile company who overstated assets by $35 million has agreed to plead guilty in a fraud case that bankrupted the manufacturer and cost 300 people their jobs.
Roy Terry, the one-time CEO of Terry Manufacturing Co., was expected to plead guilty Monday to charges including bank fraud, wire fraud, misuse of pension funds and illegal transportation of money across state lines, court documents show.
He faces a maximum sentence of 30 years in prison and $1 million in fines.
Terry Manufacturing was started in 1963 by J.A. Terry, but sons Roy and Rudolph Terry took over after their father retired in the mid-1970s. The company made items including military fatigues, NHL gear and uniforms for corporations including McDonald's.
Black Enterprise magazine listed Terry Manufacturing among the largest U.S. black-owned businesses, with total sales of $49.5 million in 2003. But the company already was drowning in red ink and fraud by then, court documents show.
With millions in unpaid loans and the company shut down, Roy Terry admitted to banks and federal investigators in June 2003 that Terry Manufacturing's assets were inflated by $35 million, court documents show.
The company filed for bankruptcy the following month, but many of its employees got jobs in another mill in the east Alabama town of Roanoke. Terry Manufacturing, which was liquidated, still owes banks more than $20 million in unpaid loans, according to the charges against Terry.