Mamtek Consultant to pay $100K Settlement in Lawsuit
A business consultant who helped sell Missouri on a sweetener manufacturing company's project will pay $100,000 to settle bankruptcy court claims that he participated in a scheme to divert millions of construction funds to company insiders.
The Columbia Daily Tribune reports that U.S. Bankruptcy Judge Dennis Dow approved the settlement with Tom Smith on Friday. Smith was sued by bankruptcy trustee Bruce Strauss for $39 million for the amount the city of Moberly borrowed to build the factory, plus nearly $800,000 paid to the company, Mamtek, as project manager.
The settlement comes after Smith threatened to file bankruptcy if the suit was taken to trial, according to a brief written by attorney Victor Weber.
Smith retired in 2005 after career in the Army and National Guard for more than 30 years.