Former Northwood mayor receives probation in fraud case
A former Northwood mayor charged with defrauding about $300,000 from Northwood State Bank was placed on probation for three years today in Worth County District Court.
Randy Lee Severson, 52, received a 10-year suspended prison sentence.
According to the Mason City Globe Gazette, Severson was ordered to pay a $125 law enforcement initiative surcharge, court costs and attorney fees. A $1,000 fine was suspended.
He was accused of defrauding the bank of $300,000 from 2011 to 2014 while president of Northwood Lumber.
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.
Severson resigned as Northwood mayor during a City Council meeting in November 2012, citing health reasons. He previously served as a member of the council.