This week marks one year since an artificial sweetener company in Moberly filed for bankruptcy.
The City is now dealing with the financial repercussions caused by Mamtek. The legal fees accumulated in connection to the court case must be included in the new budget starting July 1st. An estimated $422,800 dollars will have to be included for the attorney. In past year’s the City typically budgeted between $50,000 and $100,000 for legal fees.
The City issued $39 million dollars in bonds for the project, which promised to bring 600 jobs to the Moberly area. After Mamtek defaulted on the bonds, CEO Bruce Cole was charged with on count of theft and four counts of engaging in fraud. The 65-year-old’s case is being heard in St. Charles County. A Jury Trial has been scheduled for February 2014.