A former official from Southwestern Michigan College is facing decades in prison if convicted of a massive alleged fraud against the Dowagiac college. Gregory DeRue of Granger, Indiana has been indicted on 11 counts of money laundering and fraud, and pled not guilty in federal court in Grand Rapids to the charges on Monday. Federal prosecutors accuse DeRue of using his own company, DMG Media of Mishawaka, to purchase television, radio and billboard ads for SMC that never actually happened. He's accused of pocketing over $200,000 from the college through the phantom advertising while employed as the college's marketing director before he was fired in May 2013. The government seized over $115,000 from DMG Media's bank account in July. They're also after DeRue's 2012 Hyundai Santa Fe SUV, which was allegedly paid off using a check he wrote to himself from the college, and another $92,000 that he obtained through the scheme. The federal indictment does not say how the college or authorities uncovered the scheme.
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