The criminal trial of former CEO of Stone Creek Homes, Inc. of both Plymouth and Central City, Nebraska, David Ferguson, started on Tuesday, March 8. Ferguson is facing 14 counts ranging from nine counts of theft (D felonies), two counts of receiving stolen property (D felonies), and three counts of corrupt business influence (C felonies).
Ferguson and his business partner, Alan Donahue, surrendered to the Marshall County Sheriff’s Department on July, 2014. A grand jury indictment against the two was handed down on or about February 13, 2012. The charges stem from failing to produce products for investors and failure to pay some employees. Additional charges stem from the company allegedly withholding funds for health insurance and failing to pay the premiums.
The where-a-bouts of the partners was unknown for several months; however WTCA Radio was able to locate Ferguson after seeing pictures in August, 2013 on the internet of him opening a business in Snyder, TX.
Ferguson closed the Plymouth factory abruptly on May 24, 2012 after instructing the Human Resource Director and General Manager to lay off 41 hourly employees. When office personnel arrived at the plant the next day, they found all of Ferguson’s personal items, computers, etc. gone. He had also vacated a rental house on Pretty Lake, disconnected his cell phone, and did not return emails. Donahue closed the Nebraska plant in the same manner within hours.
Reportedly, they left without paying a long list of suppliers as well.
At this point, Donahue, who faced 11 counts, will be given immunity and charges will be dropped if he testifies truthfully in the trial. He was questioned for several hours pertaining to the company’s dealings by Marshall County Prosecutor, Nelson Chipman, and Defense Attorney, Michael Tuszynski. Donahue could be called for additional questioning when the trial convenes on Wednesday.
Donahue testified that they shut down the business when they could not make payroll. According to Donahue’s testimony, both he and Ferguson received $5,000 bonuses on May 8, 2012 and $12,000 each on May 24, 2012 to empty the company bank account. According to further testimony, they secured a loan for $100, 000 through Stone Creek Homes, Inc. which they guaranteed personally to make the last $50, 000 payroll for hourly employees. The remaining $50, 000 was transferred to Ferguson.
Superior Court Judge, Robert Bowen, read the charges verbatim against Ferguson and explained the nature of the charges to the jury prior to any witness testimony. In his instructions, Judge Bowen said the state has the burden of proof concerning the charges and the defendant is assumed to be innocent.
