ALBANY, N.Y. — Former Salt Lake City Councilman Eric Jergensen was one of two executives who pleaded not guilty this week to conspiring to steal $2.5 million from a New York aircraft repair facility.
The U.S. Attorney's Office in Albany says Jergensen, of Salt Lake City, and Debashis Ghosh, of Chicago, entered the pleas in federal court Wednesday. The men are CEOs at Verdant Capital Group.
Authorities say the men had agreed to maintain $2.5 million in a bank account for their client, but quickly spent the funds provided by a firm not identified by prosecutors. New York media outlets identify the company as the Laurentian Aerospace Corp.
Prosecutors say all of the money had been transferred out of the account within four months and used to pay Verdant's expenses.
Jergensen served on the Salt Lake City Council from 2002-2010 and did not seek a third term.
The attorney for the two men declined to comment.