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BEND, Ore. (AP) — 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 reports 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.

Schrameck is scheduled to be sentenced in August.

His company was purchased in 2010 and renamed Epic Aircraft.


Information from: The Bulletin,