GRAND RAPIDS – Barton Watson, the chairman of Cybernet Group, shot himself to death on Thanksgiving eve in his million dollar suburban Grand Rapids home rather than face the prospect of another jail term.
The suicide came a week after federal agents seized equipment and records at Cybernet?s headquarters in Grand Rapids. The FBI is investigating whether Watson, his wife, Krista Kotlarz-Watson, and James Horton committed financial fraud in a $3 million deal to purchase computer servers.
Charter One filed suit against Cyberco Holdings last week accusing the company of “perpetrating a scheme to defraud Charter One and likely other creditors.” The financing company lent Cyberco $3 million for the purchase of 66 computer servers, the data hub for a computer network. Charter One claims Cyberco used fake tax returns and fraudulent financial statements when it sought cash for the equipment.
In a sworn affidavit from Linda Connor, head of Technology Professionals Corp., an employee of Cyberco told her he was “aware that many of the ‘servers’ were not operational and contained only lights.” The employee also said he was instructed to turn the servers on so customers would be duped into thinking Cyberco was a bigger, more substantial company than it was.
Daniel Yeomans who was assigned by a Kent Circuit Count judge to see if the business can be salvaged or if its assets can be liquidated said it might be difficult for creditors to reclaim the money because the company leased many of the business possessions.
Watson?s suicide ended a career of financial scams, which included a 1987 federal prison sentence for fleecing investors in Washington, D.C.. He founded CyberNet shortly after leaving federal prison in 1989. The company apparently has died along with Watson.
