COLUMBIA, Mo. (AP) _ 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 (http://bit.ly/25mpzgq ) 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.