On June 22, 2006, CyberNET president James Horton pleaded guilty in U.S. District Court in Grand Rapids to four counts of felony mail fraud, and was sentenced to 7½ years in prison. Paul Wright pleaded guilty on August 31, 2007 to federal charges of conspiracy to defraud banks and finance companies, money laundering and mail fraud. He was sentenced to 2½ years in prison. Krista Watson pleaded guilty on September 4, 2007 to federal charges of conspiracy and tax evasion, and was sentenced to seven years in prison.