BEND, Ore. — Authorities say the former CEO of an Oregon aircraft company who defrauded customers by using their money for other projects and to support his lavish lifestyle has pleaded guilty.
The Bulletin reported that 73-year-old Fred Schrameck of Bend pleaded guilty Monday to a charge of wire fraud.
Federal prosecutors say the former Epic Air CEO solicited more than $1.4 million from customers to buy and help build experimental aircraft, including the Epic LT. Prosecutors say the airframe purchase agreements and aircraft completion assistance agreements that he gave to customers misrepresented how the money was being spent.
He is to be sentenced in August.
