Reply #141: Cyberco Holding Inc. [View All]

Cyberco Holding Inc. does business as CyberNET group and CyberNET Engineering. The company sells high-tech services, including data storage and computer security.

Federal agents searched Watson's home and Cyberco last week as part of a fraud investigation, The Grand Rapids Press reported. The FBI is investigating whether owners Watson, his wife, Krista Kotlarz-Watson, and James Horner committed fraud in a $3 million deal involving computer servers.

Officials with the U.S. Attorney's Office for the Western District of Michigan would not comment on the case Wednesday.

An Illinois-based lender last week filed a civil lawsuit accusing Cyberco of fraud. Charter One Vendor Finance said it has a financial agreement that allowed Cyberco to acquire 66 servers, but only 25 could be found in a September visit to their offices.

A Kent County judge signed an order that allowed a court-appointed receiver to take control of the company's assets this week.

The court-appointed receiver, Dan Yeomans, said more than 40 leasing companies may be among creditors for the company.

Cyberco has an estimated 150 employees in Grand Rapids.

Yeomans said the week has been "jaw dropping" for Cyberco's estimated 150 Grand Rapids employees.

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http://www.freep.com/news/statewire/sw107724_20041124.htm