A former Craig Consumer Electronics Inc. vice president pleaded guilty to three counts related to falsifying books to secure loans for the now-defunct company.
Bonnie Metz admitted to inflating Craig’s inventory to boost the amount the company could borrow under a credit line from a group of four banks. The false statements caused the banks to lend $130,000 that Craig couldn’t otherwise have borrowed, according to papers filed in U.S. District Court in Los Angeles.
Last year, a Los Angeles federal jury convicted Craig’s former chief executive on charges including making false statements to the Securities and Exchange Commission, conspiracy and bank fraud.
Metz is scheduled to be sentenced in March and faces a jail term of 10 to 16 months. A call to Metz’s attorney, James Riddet, wasn’t returned.