Company founder pleads guilty to bank fraud

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The founder of a Vermont company that provided information technology services to clients has pleaded guilty to bank fraud.

Fifty-two-year old Ernest Fred Pierce of Grand Isle, who founded Vermont Technology Group six years ago, pleaded guilty to charges that he defrauded the Chittenden Bank.

Authorities say he did so by using phony accounts receivable, money supposedly due to his company from clients, to increase the amount of money he could borrow from the bank.

When Chittenden discovered the fraud in 2006, authorities say Pierce took money he was supposed to be paying the bank and used it for other purposes.

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