December 17, 2008
Edgar J. Beaudreault, 60, of Alpharetta, pleaded guilty today in federal district court to conspiracy to commit wire fraud for his part in a scheme to defraud a California construction firm of nearly $13 million.
According to Acting U.S. Attorney Sally QuillianYates and the information presented in court, the scheme ran from August 2003 through January 2004. Beaudreault and his co-defendants had been indicted for conspiring to defraud Cornell Corrections of California Inc., a private company that operates corrections facilities for various governmental units.
In June of 2003, Cornell Corrections contracted to have a corrections facility built in Canon City, Colo., for $13 million. The $13 million purchase price was to be held in an escrow account until the facility was completed. Two months later, Beaudreault and his codefendants induced Cornell Corrections to transfer its $13 million into an account in Atlanta controlled by Beaudreault. They falsely represented to Cornell that the account was an escrow account administered by a reputable bank.
Upon receipt of Cornell Corrections' $13 million, Beaudreault and his co-defendants wire transferred the majority of Cornell's $13 million to other accounts, to be used for their own purposes.
Beaudreault was indicted in August 2008 on charges of conspiracy and wire fraud. He pleaded guilty to conspiracy to commit wire fraud. He could receive a maximum sentence of 20 years in prison and a fine of up to $250,000. In determining the actual sentence, the court will consider the U.S. Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
Sentencing is scheduled for March 18, 2009, before U.S. District Judge Clarence Cooper.
This case is being investigated by Special Agents of the Federal Bureau of Investigation.
Assistant U.S. Attorneys Bernita Malloy and David McClernan are prosecuting the case.
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