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Guilty Plea Set In Fraud By Krystal Employee

Monday, May 23, 2005

A former Krystal Company employee has signed a "factual basis for guilty plea" affidavit after being charged in Federal Court.

Prosecutors said Mitzi Clark Rector Johnston transferred 63 checks written to Krystal to her personal account. The total amount was $91,928.94.

Ms. Johnston was charged in the same case earlier, but it was then dismissed. A new bill of information lists three of the checks - two for $1,265.62 each from Citizens State Bank and one for $1,985.01 from Clear Channel Worldwide.

The affidavit says Ms. Johnston worked in the real estate and franchise area for Krystal from July 2002 to March 2004.

It says she began taking checks written to Krystal to SunTrust Bank and having them endorsed to her. She told bank officials she was due the checks on property Krystal leased from her and then subleased to other entities.

It says she was asked if she wanted to set up a business account, but she said she would keep the money in her personal account.

The affidavit says SunTrust officials eventually told employees to no longer allow the endorsed checks. It says Ms. Johnston brought more checks, but was told they would no longer be accepted.

It says Ms. Johnston voluntarily contacted the FBI and confessed on June 2, 2004.

No date for entering the guilty plea has been set.

She at one time was a victim/witness coordinator for the district attorney's office.


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