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.
Image Entry, a data-entry firm, once employed hundreds of people in Eastern and Southern Kentucky.