A Big Lake man whose attempt to plead guilty in an $6 million embezzlement scheme was delayed last month after he admitted to smoking pot the day before his court hearing finally got his wish Tuesday.
Chad Jurgens, 38, admitted to stealing the money from his employer, chemical manufacturer Haas TCM, in an elaborate billing scheme involving an account at Seagate Technology in Bloomington.
U.S. District Judge James Rosenbaum asked Jurgens, who appeared in court in blaze-orange garb supplied by the Sherburne County Jail, if he'd had any alcohol or drugs in past 24 hours. It was Jurgens' response to the same question on March 17 -- admitting that he'd smoked marijuana -- that landed him in jail and delayed his arraignment and plea hearing.
On Tuesday, Jurgens said he was clean, and pleaded guilty to one count of wire fraud.
He said he submitted phony purchase orders for Seagate, which makes computer storage devices, between 2002 and 2008. Seagate didn't use the chemicals listed on the order, Jurgens said. He said he routed the invoices through Haas TCM's electronic procurement system so the money would be paid to a different company that was supposedly providing the chemicals.
Jurgens said he spent the money setting up numerous businesses, and that he bought land and built a home and purchased a Lincoln Navigator, jewelry, boats and water scooters.
Rosenbaum seemed dubious about where all the money went, but accepted the plea.
Questioned by reporters after the hearing, Jurgens' attorney, Joseph Tamburino, wouldn't discuss the unnamed businesses, but denied that his client is hiding money. He said Jurgens' family has gone bankrupt and lost its home to foreclosure. "There's no offshore accounts," he said.
Jurgens faces a prison sentence and fines. A preliminary calculation based on the advisory sentencing guidelines indicates the prison term could be 51 to 63 months. He also must pay restitution. He was released on a $25,000 unsecured bond, pending sentencing in two to three months.
Dan Browning • 612-673-4493
