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Former city employee pleads guilty to fraud

Published: Sunday, August 30, 2009 2:49 AM CDT

SPRINGFIELD, Mo. (AP) -- A former Nixa street department worker has pleaded guilty to taking part in a mail fraud and money laundering scheme while employed by the city.

Federal prosecutors say 44-year-old David Griggs admitted on Thursday that he created two phony corporations to mask an embezzlement scheme valued at more than $756,000.

Officials say Griggs, former street department superintendent Larry Covington and Covington's wife, Paula, used the companies to bill the city for goods and services that were never provided.

The Springfield News-Leader reports that as part of the plea, Griggs agreed to forfeit a travel trailer and $756,010 obtained through the scheme.

He faces a maximum sentence of 50 years in prison without parole and a $1 million fine.


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