Former Eastern Kentucky businessman Bill D. Deaton pleaded guilty Tuesday to conspiracy to commit wire fraud.
Deaton, founder of Image Entry, admitted transmitting false information as part of a scheme to inflate the company's earnings so he could get more money after he sold it to a Texas company for $32.8 million in 2001.
Deaton, 62, pleaded guilty in Texas. Court records do not show whether a sentencing date has been set for him.
Prosecutors and defense attorneys disagree on how Deaton's sentence should be calculated, court records show. That issue is still to be worked out.
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Image Entry, a data-entry firm, once employed hundreds of people in Eastern and Southern Kentucky.