The CEO of a company at the center of a $53 million fraud case that includes three local defendants has changed his plea from “not guilty” to “guilty.” His assistant also changed her plea, The Lancaster (Penn.) New Era reported Thursday.

Joseph M. Braas, former CEO of Equipment Finance Inc. (EFI) pleaded guilty Wednesday to one count of conspiracy and two counts of mail fraud. To read his plea agreement, click here.

The firm’s former secretary/treasurer, Mary C. Stankiewicz, was scheduled to plead guilty Thursday to one count of conspiracy.

Braas originally was charged with one count of conspiracy and eight counts of mail fraud, which carries a maximum penalty of 245 years.

The terms of his plea agreement provide for six counts against him to be dismissed. Sentencing for Braas was set for March 9. He faces up to 65 years in prison and $2.25 million in fines, and will be ordered to pay restitution. He is free on $50,000 bail.

The alleged fraud involved creating hundreds of bogus loans and covering up real loans that went bad.

The inflated size and health of the Manheim Township firm’s loan portfolio was used to justify bonuses and raises for its employees.

Prosecutors described Braas as a central figure in the scheme, which caused $53 million in losses to EFI, the bank and Sterling.

Besides padding EFI’s books to garner more pay, Braas admitted stealing substantial sums for himself.

Also charged are:

• John Wiley Spann, a 50-year-old Andalusia logging equipment dealer. He is charged with one count of conspiracy, eight counts of mail fraud, one count of conspiracy to commit money laundering and five counts of money laundering.

He faces a maximum sentence of 305 years in prison. He is free on $50,000 bail.

• Harold W. Young, 65, president of South Central Agency in Andalusia. He is charged with one count of conspiracy, eight counts of mail fraud, one count of conspiracy to commit money laundering and five counts of money laundering.

He faces a maximum sentence of 305 years in prison. Young is free on $50,000 bail.

• John S. Tomberlin, 39, an Andalusian and a South Central Agency employee. He is charged with one count of conspiracy, eight counts of mail fraud, one count of conspiracy to commit money laundering and five counts of money laundering.

He faces a maximum sentence of 305 years in prison. Tomberlin is free on $50,000 bail.

• Michael J. Schlager, formerly EFI’s senior vice president, who allegedly co-led the scheme with Braas. He faces a maximum sentence of 245 years in prison. Schlager is free on $100,000 bail.

• Misty L. Kroesen, 38, formerly an EFI accounting clerk. She faces a maximum sentence of 245 years in prison. Kroesen is free on $25,000 bail.

• Curtis A. Kroesen, 35, Misty’s husband and formerly an EFI account executive. He faces a maximum sentence of 245 years in prison. Kroesen is free on $25,000 bail.

A trial for the seven defendants pleading not guilty is scheduled to begin Jan. 20.