U.S. prosecutors preparing to take Chapman back to court

September 15, 2005|BY SUN STAFF WRITER

Federal prosecutors want to take Nathan A. Chapman Jr., a former investor convicted of defrauding the state pension system he helped to manage, back to court after he failed to pay a settlement of more than $200,000, a spokeswoman for the U.S. attorney's office said yesterday.

Chapman, 47, agreed in June to pay $215,000 in exchange for federal prosecutors' dropping three bank fraud charges against him. To settle those charges, which were related to the purchase and selling of a home, Chapman had agreed to pay the money within 60 days and admitted wrongdoing, but he did not enter a plea.

"There was an agreement that he'd pay by a certain date," said Vickie LeDuc, a spokeswoman for the U.S. attorney's office. "And so now we're going to go forward with scheduling a trial."

LeDuc said that as of yesterday, Chapman had not paid any of the settlement despite being given several extensions, the last of which expired Friday. According to terms of the agreement, Chapman was supposed to pay the settlement by Aug. 16.

Chapman's attorney could not be reached for comment yesterday. Chapman was convicted in 2004 in U.S. District Court on 23 counts that included defrauding the state's pension system, stealing from his companies and lying on tax returns. He was sentenced in November to 7 1/2 years in prison, but he remains free pending appeal.

LeDuc said that Chapman's admissions of wrongdoing, made at the time the agreement was reached, will be used against him in court. She did not know when the trial would be scheduled.

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