Court Rejects "They Should Have Known" Defense

Law360, New York (July 20, 2006, 12:00 AM EDT) -- A pair of former executives at defunct Monon Corp. is facing jail time and millions of dollars in fines after a federal appeals court rejected their defense against fraud charges Wednesday. The two men blamed their creditors for helping to drive the company into bankruptcy, saying the lenders should have caught on to their scheme.

The U.S. Court of Appeals for the Seventh Circuit in Chicago soundly rejected the argument and affirmed seven-year prison terms and $8.7 million in restitution against former chief executive Thomas J....
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