A Pittsfield CEO was sentenced to federal prison Thursday on fraud charges.
A federal judge in St. Louis sentenced Douglas Pennock, 45, to 14 months in prison and five years probation in connection with charges that he overstated the accounts receivable of his business on a large line of credit he obtained in June 2008.
Pennock, owned, operated, and was affiliated with a number of businesses, including a business known as JDL Longhorn, Inc. with principal offices in Pittsfield. JDL Longhorn provided services relating to the construction of animal confinement systems.
In May and June 2008, JDL Longhorn arranged for a line of credit with Peoples Bank, Troy, Mo. Most of the funds from that line of credit were used to pay down earlier loans to other banks.
Evidence in the case showed that Pennock provided false information regarding the status of his accounts receivable for JDL Longhorn.
Eventually the company defaulted on the loan, resulting in a substantial loss to Peoples Bank.
Pennock pleaded guilty to one count of bank fraud in August 2012 and appeared Thursday for sentencing before United States District Judge Henry Autrey in St. Louis.