Poplar Bluff contractor pleads guilty to fraud

A Poplar Bluff, Mo., contractor has pleaded guilty to three felony charges of mail fraud in connection with a scheme to defraud insurance companies.

Michael F. Persons faces a maximum of five years imprisonment and a fine of up to $250,000 on each count. KAJACS, Persons' corporation, also faces a maximum fine of $500,000.

Persons agreed to the guilty pleas Wednesday in exchange for the government's promise to dismiss the remaining counts of the indictment. He and the company agreed to repay $13,101.80 to insurance companies and $669.92 wrongfully withheld from two employees.

Persons and the company also agreed to pay fines totaling $250,000.

Persons admitted defrauding insurance companies that insured KAJACS Contractors Inc.' s property and equipment.

As part of the agreement, Persons and his company are barred from participating in the U.S. Small Business Administration Minority Enterprise Development Program.

Sentencing has been set for March 11 before Judge E. Richard Webber in Cape Girardeau.

The pleas conclude a four-year investigation by agents of the U.S. Department of Labor, the U.S. Small Business Administration, the FBI and the U.S. attorney's office in Cape Girardeau.