mamtek

mamtek
Kristofor Husted / KBIA

An investment banker and a St. Louis law firm are settling for up to $8.25 million in a lawsuit over bonding for a failed Missouri sweetener factory.

The Columbia Daily Tribune reports a settlement deal filed earlier this week will give investors back more than 80 percent of losses on the plant that never was built.

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Kristofor Husted / KBIA

Attorneys say an investment firm has settled a federal lawsuit accusing it of bilking investors out of $39 million in a failed effort to build an artificial sweetener plant in Moberly. 

mamtek
Kristofor Husted / KBIA

The former chief of a failed Missouri sweetener venture has been sentenced to seven years in prison for stealing more than $700,000 from the project for his own personal use.

The City of Moberly

The Moberly City Council is making changes to the city’s investment policy three years after the Mamtek collapse damaged the city’s credit rating. Council members passed an ordinance Monday to update the city’s current policy for investment and debt management to help restore the rating. 

Standard and Poors dropped Moberly’s credit rating from “A” to “B” in 2011 as a result of Mamtek’s closing.  In a 2013 report, Standard and Poors stated the city could improve its rating if it continued to meet its debt payments and follow its debt management policies.

The former CEO of a company that announced it would open an artificial sweetener plant in a small north Missouri town, but never did, has pleaded guilty to three felony counts connected to the scandal.

In 2010, Mamtek CEO Bruce Cole persuaded city leaders in Moberly to issue $39 million in bonds to build the plant, which was to employ 600 people. Shortly afterward, the state's Economic Development Department kicked in $17 million in tax credits for the project -- however, those credits were never used.

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Kristofor Husted / KBIA

A federal judge has ruled that former Mamtek CEO Bruce Cole committed fraud to obtain almost $1.3 million from bond funds that were to be used to build an artificial sweetener plant in Moberly.

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Kristofor Husted / KBIA

The criminal trial of former Mamtek CEO Bruce Cole has been delayed until December by a St. Charles County judge presiding over the case.

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Kristofor Husted / KBIA

A federal judge has ruled that the city of Moberly, Mo., and its industrial development authority are not responsible for bonds involved in a failed artificial sweetener plant project.

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Kristofor Husted / KBIA

A bankruptcy trustee has filed lawsuits seeking millions of dollars in damages against former officials with Mamtek, the company behind a failed plan to build a sweetener facility in Moberly.

The Columbia Daily Tribune reports Trustee Bruce Strauss filed lawsuits last week seeking repayment of $7 million that former officers and agents of Mamtek received. The lawsuits also seek actual damages of $72 million and punitive damages.

MFA Oil approved to purchase Mamtek property in Moberly

Dec 3, 2013
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Kristofor Husted / KBIA

MFA Oil announced this afternoon it has been approved to purchase property in Moberly that would have housed the Mamtek facility. MFA officials could not comment on the sale price, but say a bankruptcy court has approved the sale of the 33 acre property. 

Corey Mehaffy is the President of Moberly Area Economic Development. He said the city is looking forward to assisting MFA in preparing the facility for use after the previous trouble the city had with the space.

steakpinball / Flickr

A new lawsuit is seeking $30 million from an investment banking firm and 10 employees because of a failed factory project in central Missouri.

Morgan Keegan, which has merged with Raymond James Financial Inc., was the underwriter in 2010 for a $39 million bond issue for a failed artificial sweetener factory for Mamtek US Inc. in Moberly. Construction on the factory stopped in August 2011 when Mamtek failed to make a required bond payment.

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Flickr / steakpinball

A northeast Missouri community has agreed to pay $95,000 to end its involvement in a lawsuit filed by investors in a failed artificial sweetener plant.

The Columbia Daily Tribune reports Moberly and the Moberly Industrial Development Authority have settled a lawsuit filed by Shelter Insurance Cos. and other Mamtek investors.

The city filed notice of the deal with the Missouri Supreme Court this week and asked it to dismiss a pending case to determine whether the city could be forced to take part in the suit.

Keith Burtis / Flickr

A federal judge in Missouri has refused to remove herself from a lawsuit involving a failed sweetener company whose leaders were aggressively questioned by the judge's lawmaker husband.

Attorneys for investment bank Morgan Keegan wanted U.S. District Judge Nanette Laughrey to step aside from a lawsuit filed by an Alabama investor in the failed plant in Moberly.

The Columbia Tribune reports John Cromeans is seeking restitution of $50,000 he spent on bonds issued by the Moberly Industrial Development Authority for Mamtek U.S. Inc. and marketed by Morgan Keegan.

Koster wants to track ex-Mamtek CEO with GPS

May 16, 2013
Brian Turner / Flickr

Missouri prosecutors want a judge to let them keep closer tabs on the former head of a failed artificial sweetener plant in Moberly.

Earlier this week, KBIA told you the City of Moberly has paid at least $677,000 in court fees since the Mamtek sucralose factory failed in 2010, including at least $60,000 in fees so far in April. Today, the Moberly Monitor-Index is reporting the city and its development authority have both been dismissed from a case being brought against them by Mamtek bondholders.

Moberly has taken close to a sixty thousand dollar hit this month because of Mamtek, the failed artificial sweetener plant.  

Throughout April, the city has spent that sum in legal fees due to the Mamtek fiasco.

These legal costs include attorneys’ fees that Moberly is paying in their fight against Mamtek in court.

The spent funds will take away from money that could have gone toward other departments in the city, such as the police and fire departments. That’s according to City Director of Finance Greg Hodge.

Missouri Secretary of State Jason Kander is taking action against a financial management company connected to the failed Mamtek artificial sweetener plant in mid-Missouri.

In his role as Secretary of State Jason Kander also serves as Missouri’s chief securities regulator.

He’s accusing Morgan Keegan, a Memphis-based firm of helping defraud Missourians based on a list of falsehoods, including the claim the Mamtek held several production patents.  

Kristofor Husted / KBIA

The former CEO of a failed artificial sweetener facility has been released from a Missouri jail after posting $10,000 bail while awaiting trial on theft and fraud charges.

Officials at the Randolph County jail say Bruce Cole was released Monday. He faces one theft charge and four counts of securities fraud stemming from the financial collapse of a Mamtek U.S. facility in Moberly in 2011.

Joe Gratz / Flickr

The former CEO of a failed artificial sweetener facility in Moberly has waived his right to a preliminary hearing on charges of theft and securities fraud.

Watch the show and join the conversation on the Intersection website.

A bank says that most investors in the failed Mamtek factory project in Moberly will soon begin receiving small payments from a recent auction of the company’s equipment.

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Flickr / steakpinball

A Randolph County judge has refused to lower the $500,000 cash bond for the former CEO of a failed factory project in Moberly who is facing felony fraud charges.

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Flickr / steakpinball

A central Missouri judge will allow media to have cameras, audio and video recording during court appearances by the former head of an artificial sweetener company now facing charges of theft and securities fraud.

Bruce Cole was chairman and CEO of Mamtek U.S. Inc., which received $39 million in industrial development bonds from the city of Moberly to build a sweetener plant. Construction stalled after a bond payment was missed. Authorities accuse Cole of using bond revenues for personal purposes and misleading investors.

Keith Burtis / Flickr

An auction of assets left from a failed artificial sweetener factory in Moberly is drawing curious onlookers but few big buyers.

The auction of Mamtek U.S. property drew more than 20 prospective bidders Wednesday morning to a Moberly hotel ballroom, joined by online participants.

Buyers sought deals on individual pieces of equipment owned by Mamtek, but no one submitted a bid for the company's real estate or its intellectual property.

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File Photo / Flickr

The northern Missouri artificial sweetener plant project that turned sour when its financing collapsed last year is holding an out-of-business sale.

Mamtek U.S. received $39 million of industrial development bonds from the city of Moberly and could have earned up to $17 million of state tax incentives to build the factory. Construction ceased on the partially complete factory after Mamtek missed a bond payment in August 2011. Former CEO Bruce Cole faces fraud and stealing charges and remains in the Randolph County Jail awaiting trial.

Joe Gratz / Flickr

The former CEO of a failed sweetener facility is back in Missouri to face charges that he spent public money intended for the planned Moberly factory for his personal use.

Ex-Mamtek U.S. Inc. head Bruce Cole faces fraud and stealing charges after plans to build the plant collapsed. Prosecutors say he used some of the money from a $39 million bond to avoid foreclosure on his Beverly Hills home.

The former CEO of a proposed sweetener facility is in jail in Missouri after giving up his fight against being extradited from California.

Ex-Mamtek U.S. Inc. head Bruce Cole faces fraud and stealing charges after plans to build a sweetener plant in Moberly collapsed. Prosecutors said he used some of the money from a $39 million bond to avoid foreclosure on his Beverly Hills home.

Regional news coverage from the KBIA newsroom, including:

  • More Akin abortion remarks stir criticism
  • Sweetener company CEO headed back to Missouri
  • Schaefer, Still square off in debate on MU campus
  • McCaskill says she raised $5.8M for Mo. Senate bid
Kristofor Husted / KBIA

Missouri officials say the former head of an artificial sweetener company has agreed to return from California to face charges of theft and securities fraud stemming from a failed factory project.

Bruce Cole was chairman and CEO of Mamtek U.S. Inc., which received $39 million of industrial development bonds from the city of Moberly to build a sweetener plant.

Cole is charged in Missouri with using bond revenues to avoid foreclosure on his Beverley Hills home and misleading investors about his company's financial health.

The former CEO of Mamtek is fighting extradition to Missouri.

At a court hearing today in Santa Ana, California, Bruce Cole refused to be extradited, which means that he can’t be sent back to Missouri unless the Governor of California asks the court to order it.  A spokeswoman for the Missouri Attorney General’s office says that request is being expedited.

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