Grand Rapids, Michigan- February 26, 2007- United States Attorney Margaret M. Chiara announced today that Geraldine Watson entered a guilty plea to one of the criminal charges brought against her by a federal grand jury. CyberNET was a company located in Grand Rapids, Michigan between 1992 and November, 2004. The company collapsed after federal investigators executed search warrants at CyberNET headquarters on November 16, 2004.

Geraldine Watson, 77, pled guilty to making a false statement to a firearms dealer in connection with the purchase of a gun on November 22, 2004. Federal law prohibits material false statements by a gun purchaser in connection with the acquisition of a firearm. This statute, 18 U.S.C. § 922(a)(6), carries a maximum penalty of imprisonment of ten years, plus other penalties. She admitted this charge before Chief Federal District Judge Robert Holmes Bell.

As part of her plea agreement with the government, Watson has agreed to cooperate with the investigation and prosecution of others. The prosecution agreed that it would not oppose a reduction in her sentence for pleading guilty, if the court determined that was appropriate. The government also agreed to request the dismissal of the remaining charges against Watson at the time of her sentencing, which has been scheduled for May 31, 2007 at 1:00 p.m.

This investigation was conducted by the Grand Rapids Offices of the Federal Bureau of Investigation, the Internal Revenue Service and the United States Postal Inspection Service.