A Knoxville man was sentenced to 10 years in prison for stealing more than $142,000 intended for industrial development in Morgan County, reports the News Sentinel.
John H. Brichetto Jr., 61, had his bond revoked and was immediately handcuffed and taken to the Morgan County jail after kissing his wife, Lisa Horn Brichetto, who is a co-defendant.
Under sentencing guidelines, Brichetto faced between eight and 12 years, either in prison or on probation. Senior Judge Paul Summers imposed what the state requested in a 27-page sentencing memorandum.
By law, Brichetto will have to serve 30 percent of his sentence before becoming eligible for parole.
But the judge added another layer to the sentence: Brichetto will either have to repay all the money he stole or have a court-approved arrangement for that payback in place before he can be paroled.
Summers’ role in the long-running case isn’t over. Wednesday’s hearing was for Brichetto and his wife, but her day in court was delayed because her court-appointed attorney became ill.
The Brichettos were principals in Northington Energy LLC, and each was indicted for theft of more than $60,000 for stealing part of a $250,000 state Feedstock Loan Program loan for biodiesel plant equipment to convert soybeans into fuel.
Only $4,908 was used to buy equipment, according to a state Department of Economic and Community Development official’s memo.
The prospect for the plant on an 11-acre tract in Flat Fork Industrial Park just outside Wartburg prompted Morgan County officials to apply for and receive $468,000 in state and federal grants to improve the industrial park. The county also chipped in $9,000 to match the grants.
The biodiesel project also spurred hopes in the impoverished county that it would create jobs — in the biodiesel plant and for farmers growing soybeans.
At first, “The scam was done well enough and flawlessly enough that everyone was fooled,” the judge said. Brichetto used a false Social Security number on his application for the state loan, the judge said.
The Brichettos “basically robbed jobs, development and potential pride,” the judge said.
Prosecutor Bob Edwards said the Brichettos submitted fraudulent invoices to Morgan County and the state.
Instead of using the loan proceeds to buy biodiesel equipment, the Brichettos spent the money to pay for a lifestyle that included thousands of dollars in alcohol, a Land Rover vehicle, travel and clothing, according to the state sentencing memo.
The state said the couple gave “Morgan County a political and social black eye” and drained resources that could have been used for other public interest and development projects.
The plant was started in the Flat Fork Industrial Park, but the factory, nearing completion in late 2008, never went into production.