NEWS RELEASE

OFFICE OF THE UNITED STATES ATTORNEY

WESTERN DISTRICT OF MISSOURI

BETH PHILLIPS

Contact Don Ledford, Public Affairs ● (816) 426-4220 ● 400 East Ninth Street, Room 5510 ● Kansas City, MO 64106

www.usdoj.gov../index.html

MARCH 11, 2010

FOR IMMEDIATE RELEASE

NORTH KANSAS CITY MAN SENTENCED FOR WIRE FRAUD,

MONEY LAUNDERING

FORMER EMPLOYEE EMBEZZLED $3.5 MILLION

FROM FERRELLGAS

KANSAS CITY, Mo. – Beth Phillips, United States Attorney for the Western District of Missouri, announced that a former employee of Ferrellgas, Inc., was sentenced in federal court today for wire fraud and money laundering, related to his embezzlement of $3.5 million from the company.

Scott J. Beeson, 53, of North Kansas City, Mo., was sentenced by U.S. District Judge Gary A. Fenner this afternoon to four years and three months in federal prison without parole. The court also ordered Beeson to pay restitution to Ferrellgas.

On April 22, 2009, Beeson pleaded guilty to wire fraud and money laundering. Beeson admitted that he engaged in a fraudulent scheme to embezzle $3.5 million from Ferrellgas between January 2002 and March 2008.

Beeson was employed at the Ferrellgas office in Liberty, Mo., as manager of the fleet department from August 1995 to March 2008. Beeson admitted that he created invoices purportedly from a Ferrellgas vendor, Helgers Trucking and Sales, for work that was not done. Beeson, in his position as fleet manager, approved and submitted the false invoices from Helgers Trucking to the accounts payable department. When Ferrellgas issued checks to Helgers Trucking, the company returned 95 percent of the funds to Beeson. Beeson then deposited or had funds credited to his personal bank account or to the bank account of Prominent Youth, Inc., a non-profit organization founded and controlled by Beeson. The total amount that Beeson caused to be falsely billed to Ferrellgas was approximately $3.5 million.

Beeson also admitted that he requested or created invoices from Ferrellgas vendor Ideal Solutions for work that was not done. When Ferrellgas paid those false invoices, Ideal Solutions returned funds to Beeson for deposit into his personal bank account or to the Prominent Youth bank account.

This case was prosecuted by Assistant U.S. Attorney Kate Mahoney. It was investigated by the Federal Bureau of Investigation.

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