Attorney General Chris Koster and Randolph County Prosecuting Attorney Mike Fusselman on Tuesday charged Bruce Cole, chairman and CEO of Mamtek U.S., with stealing and four counts of securities fraud.

“The failure of the $39 million investment in Moberly was a tragedy for that community,” Koster said. “Today, we have alleged that Mr. Cole deceived the city and the investors about the project and unlawfully profited from the investment by taking at least $700,000 from the bond money for his own personal use.”

The probable cause affidavit alleges that shortly before the sale of the Mamtek bonds, Cole directed a Mamtek consultant to prepare an invoice purporting to come from “Ramwell Industrial, Inc.” This invoice requested payment of $4,062,500 for Ramwell’s services, including $3,562,500 for “Design, acquisition, and installation of five production lines,” $325,000 for engineering and design, and $175,000 for project supervision.

Cole directed that this invoice be submitted for payment even though Ramwell was never incorporated, never had any employees, never owned any property, and never provided any goods or services to Mamtek U.S. The day after the invoice was submitted, it is alleged, Cole instructed a bookkeeper for Mamtek U.S. to wire $700,000 to Cole’s wife, Nanette.

Within 48 hours of receiving the $700,000 wire from Mamtek, Nanette Cole wrote a $281,046.30 check to cash. The Coles immediately made a payment on their mortgage in the amount of $243,018.73. Shortly thereafter, the scheduled foreclosure auction of the Coles’ Beverly Hills home was canceled.