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CHARLOTTE, N.C. (AP) - A former corporate executive accused of using company money and bank loans to cover more than $30 million in gambling losses pleaded guilty Tuesday to federal fraud charges.
Carl L. Mosack, 69, declined an opportunity to speak before U.S. District Judge Graham Mullen accepted the plea agreement. Mosack will serve two years in prison and forfeit his interest in some real estate holdings and stock for the guilty pleas to wire and bank fraud charges.
Mosack, who came to court with his wife, Tricia, is expected to be sentenced in about two or three months, said his attorney, David Rudolf.
Mullen released the man without bond and allowed Mosack to take a trip to the Caribbean before he is sentenced.
"The government recognized Mr. Mosack was in part a victim of the people who were taking advantage of his addiction," said Rudolf. "There were no losses to anyone except Mr. Mosack."
Mosack is former president and chief executive officer of Conbraco Industries Inc., of Matthews, a suburb of Charlotte. He declined to talk to reporters.
Prosecutors said that during a one-year period in 1999 and 2000, Mosack lost $36 million gambling, primarily on sporting events, and won about $5 million. He allegedly placed bets of up to $1 million on some days.
Mosack has pledged to repay the company for losses he caused, Rudolf said.
Asked how much he owed the company, the attorney said "millions of dollars."
According to Rudolf, Mosack still owns a large stake in the company. Conbraco, founded by Mosack's father, employs about 1,600 people and sells more than $100 million worth of industrial valves and gauges annually.
Last year, Mosack's gambling apparently brought the 73-year-old company close to ruin. First Union threatened to declare the company in default on its $8 million line of credit when it learned of his use of company loans to finance gambling debts.
Carl L. Mosack, 69, declined an opportunity to speak before U.S. District Judge Graham Mullen accepted the plea agreement. Mosack will serve two years in prison and forfeit his interest in some real estate holdings and stock for the guilty pleas to wire and bank fraud charges.
Mosack, who came to court with his wife, Tricia, is expected to be sentenced in about two or three months, said his attorney, David Rudolf.
Mullen released the man without bond and allowed Mosack to take a trip to the Caribbean before he is sentenced.
"The government recognized Mr. Mosack was in part a victim of the people who were taking advantage of his addiction," said Rudolf. "There were no losses to anyone except Mr. Mosack."
Mosack is former president and chief executive officer of Conbraco Industries Inc., of Matthews, a suburb of Charlotte. He declined to talk to reporters.
Prosecutors said that during a one-year period in 1999 and 2000, Mosack lost $36 million gambling, primarily on sporting events, and won about $5 million. He allegedly placed bets of up to $1 million on some days.
Mosack has pledged to repay the company for losses he caused, Rudolf said.
Asked how much he owed the company, the attorney said "millions of dollars."
According to Rudolf, Mosack still owns a large stake in the company. Conbraco, founded by Mosack's father, employs about 1,600 people and sells more than $100 million worth of industrial valves and gauges annually.
Last year, Mosack's gambling apparently brought the 73-year-old company close to ruin. First Union threatened to declare the company in default on its $8 million line of credit when it learned of his use of company loans to finance gambling debts.
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