Firm president guilty of defrauding U.S. out of $322,000

Federal prosecutors in Atlanta on Wednesday obtained a guilty plea from the president of a company that received $322,000 from the U.S. government for foam cups but never delivered them.

Gregory Jackson, 44, of Glendale, Ariz., "lied and took federal money for goods he had no intention of delivering," Inspector General Brian Miller of the General Services Administration said. Jackson is to be sentenced Aug. 9. In 2005, his company, Karson Distribution Co., was awarded the cup contract, failed to honor it and never returned the money, prosecutors said.