Another Vampire Capitalist Caught
Bruce Cole, who was chairman and CEO of Mamtek U.S., was arrested in his California home this morning. Koster said his office is seeking extradition back to Missouri. The charges come after a yearlong investigation by the attorney general’s office, Randolph County Prosecuting Attorney Mike Fusselman and the U.S. Securities and Exchange Commission.
Mamtek was supposed to build a sweetener factory in Moberly with the help of $17 million in state incentives and $39 million in bonds backed by the local government. In exchange for the investments, Mamtek promised to create more than 600 jobs in the town of 14,000 people that sits 30 miles north of Columbia, Mo.
But Mamtek was nearly broke. It missed its first bond payment in August 2011, which ultimately resulted in Moberly’s bond rating being reduced. The half-constructed factory remains empty today.