Former Northwood mayor changes plea, pleads guilty to 2 felony counts of fraud
Published 10:57 am Tuesday, May 24, 2016
By Mary Pieper, Mason City Globe Gazette
NORTHWOOD — The former mayor of Northwood has filed a written plea of guilty to two fraud-related felonies.
Randy Severson, 52, was charged with two counts of first-degree fraudulent practice committed against a city bank while he was president of a now-closed lumber business.
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He has a formal plea change hearing June 20 in Worth County District Court for the charges, Class C felonies punishable by up to 10 years in prison on each count.
Winnebago County Attorney Adam Sauer, who was appointed as special prosecutor in the case, said an additional count of first-degree fraudulent practice, as well as three counts of second-degree fraudulent practice and one count of ongoing criminal conduct, will be dismissed.
Severson was accused of fraudulently using the names of customers, family members and others on invoices he submitted to Northwood State Bank for lines of credit.
He was accused of defrauding the bank of $300,000 from 2011 to 2014 while president of Northwood Lumber.
Severson resigned as Northwood mayor in November 2012 citing health reasons. Northwood Lumber closed earlier this year.