On April 6, 2005, it was reported that a settlement deal between the Morrisseys and Oregon's Department of Consumer and Business Services had been reached: "As part of this settlement, neither of the Morrisseys may offer or sell securities. Further, Edward Morrissey agreed to plead guilty to a single federal count of money laundering. The plea agreement reached between Edward Morrissey and the U.S. Attorney's Office calls for the government to recommend a 36-month sentence, but that recommendation is not binding on the court." On April 17, Edward Morrissey pleaded guilty, admitting in federal court that he has defrauded members of LEC in soliciting $10.7 million in loans. The fact that Mary Morrissey wasn't charged, despite also pressuring LEC members to make the loans, angered some the plaintiffs. Mary Morrissey agreed to either contribute a portion of her disposable income to refunding former members of LEC. In the August 28, 2006, edition of the "Wilsonville Spokesman", editor Curt Kipp wrote that she had repaid $24,000 of LEC's debt.