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NewsFebruary 25, 1995

Three members of the Cheatham family were sentenced to prison for bankruptcy fraud Friday by U.S. District Judge Stephen N. Limbaugh, Sr. The Cheatham's operated furniture stores in Sikeston, Cape Girardeau and Carbondale, Ill. Charles E. Cheatham, 65, was sentenced to three 36-month terms in prison on felony counts of mail fraud, bankruptcy fraud, and conspiracy. The three sentences will run concurrently...

Three members of the Cheatham family were sentenced to prison for bankruptcy fraud Friday by U.S. District Judge Stephen N. Limbaugh, Sr.

The Cheatham's operated furniture stores in Sikeston, Cape Girardeau and Carbondale, Ill.

Charles E. Cheatham, 65, was sentenced to three 36-month terms in prison on felony counts of mail fraud, bankruptcy fraud, and conspiracy. The three sentences will run concurrently.

Mark Cheatham, 36, was sentenced to 20 months in prison without parole on each of two felony counts of bankruptcy fraud. They will run concurrently.

Mary E. Cheatham-Foster, 34, was sentence to 12 months and one day in prison without parole on one felony count of tax fraud. Her sentences also run concurrently.

All three were sentenced to two years supervised release upon their release.

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Charles Cheatham admitted that, starting in 1988 and running into 1993, he and the others conspired to commit bankruptcy fraud. Charles Cheatham and his wife were primary owners of Cheatham Furniture Co. Inc. while Mark and Mary were the principal shareholders of Cheatham, Inc., Furniture Clearinghouse and Wheels Unlimited.

Mark Cheatham also owned C&C Motors with his wife.

The Cheatham's transferred property between companies in anticipation of filing bankruptcy to protect assets and seizure from bankruptcy court.

The court also ordered forfeiture of property worth $19,462, automobiles worth $59,250, jewelry worth $9,710, and homes in Sikeston worth $67,400.

Mark A. Cheatham was ordered to pay $30,000 and Charles Cheatham $35,000 in restitution.

All three defendants were allowed to remain free on bond until a prison facility is selected.

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