Clarence Allen Rice, owner of C&J Leasing, was sentenced to 70 months in prison for wire fraud in connection with a complex $8 million scheme against Frontier Leasing, according to documents from the U.S. District Court in the Southern District of Iowa.

Rice incurred more than $800,000 in day trading losses in the early 2000s using his company’s money. As a result, his company faced severe cash flow problems by early 2003. Rice addressed the cash flow problems by misappropriating millions of dollars from Frontier Leasing between 2003 and 2006 and using it to pay debts and engage in additional day trading. Rice concealed his fraud by making false statements to Frontier and his auditors, including KPMG, according to a news release from U.S. Attorney Nicholas A. Klinefeldt.

As a result of Rice’s fraud, Frontier suffered losses in excess of $5.5 million. In addition, lessees lost more than $2 million in security deposits that had been given to Rice’s company.

Previously on monitordaily: C&J Leasing Owner Guilty in $8MM Fraud Against Frontier Leasing, published July 6, 2011