Prosecutors say a Tennessee financial adviser has pleaded guilty to criminal charges in the first fraud case related to the federal bank bailout program.
The U.S. Attorney’s office says Gordon B. Grigg pleaded guilty on Wednesday to four counts of mail fraud and four counts of wire fraud in federal court in Nashville, Tenn.
Prosecutors said Grigg embezzled nearly $11 million from clients since 1996 and began falsely claiming last year that his firm, ProTrust Management Inc., could invest its money in government-guaranteed debt as part of the $700 billion Troubled Asset Relief Program.
His sentencing is scheduled for Aug. 6.
His attorney, Mark Pickrell, has said the plea agreement should net him no more than eight years in prison.
Financier pleads guilty in TARP bank fraud case
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