Former Starkey Executive Scott Nelson Pleads Guilty to 1 Federal Count of Conspiracy-UPDATED

Former Starkey Executive Scott Nelson Pleads Guilty to 1 Federal Count of Conspiracy-UPDATED
UPDATE: Scroll down for updated information from the same source link
From ABC5 KSTP:

A former Starkey Laboratories Inc. executive will plead guilty to one count of conspiracy Tuesday morning, a spokesperson for the U.S. Attorney’s Minnesota office confirms.

Scott Nelson was among those accused of conspiring to embezzle from Starkey and Sonion from 2006 to September of 2015. Starkey is a hearing aid manufacturer, and Sonion is a major supplier of hearing aid components. Charges were first filed in September of 2016, and a new indictment in January of this year charged both Nelson and former Starkey president Jerry Ruzicka of tax fraud as well.

In all, Nelson had faced three counts of mail fraud, two counts of wire fraud, one count of transactions involving fund proceeds, one count of making and subscribing a false tax return and one count of willfully aiding and assisting the preparation and presentation of a false income tax return.

But as part of a plea agreement, he will plead guilty to just the conspiracy count. A hearing was scheduled for 10 a.m. Tuesday in federal court in downtown Minneapolis.

A superseding indictment issued earlier this month reduced some of the charges facing Ruzicka, former Sonion president Jeff Taylor and former Starkey employee Larry Hagen.

More at KSTP.com

7 PM UPDATE: From the same source link

former Starkey Laboratories Inc. executive pleaded guilty to one count of conspiracy Tuesday morning in U.S. District Court in Minneapolis.

Scott Nelson was among those accused of conspiring to embezzle from Starkey and Sonion from 2006 to September of 2015. Starkey is a hearing aid manufacturer, and Sonion is a major supplier of hearing aid components. Charges were first filed in September of 2016, and a new indictment in January of this year charged both Nelson and former Starkey president Jerry Ruzicka of tax fraud as well.

In all, Nelson had faced three counts of mail fraud, two counts of wire fraud, one count of transactions involving fund proceeds, one count of making and subscribing a false tax return and one count of willfully aiding and assisting the preparation and presentation of a false income tax return.

But as part of an agreement, he pleaded guilty to just the conspiracy count at a 10 a.m. hearing Tuesday in federal court in downtown Minneapolis. Nelson could now face up to five years in prison.

As part of the plea deal he cut with the U.S. Attorney’s Office, he’s also agreed to testify against his alleged co-conspirators.

“It’s difficult for the government to prove its case without an insider who’s willing to flip,” former U.S. Attorney Rachel Paulose said Tuesday, adding that she believes Nelson’s alleged co-conspirators could still strike plea deals themselves before their planned Jan. 16 trial. “Conspiracy depends on every co-conspirator maintaining the same story. If even one of them folds or changes the story, it does have repercussions for the other defendants.”

A superseding indictment issued earlier this month reduced some of the charges facing Ruzicka, former Sonion president Jeff Taylor and former Starkey employee Larry Hagen.

Balance at KSTP.com

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Dan Schwartz

Electrical Engineer, via Georgia Tech

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