Two carpet executives have been handed prison terms, by U.S. District Judge Harold L. Murphy. 54 year old Johnny Lamar Smith of Bridgeport, Alabama, and 65 year old William Percy of Dalton, Georgia were both sentenced on charges of Conspiracy to Commit Interstate Transportation of Property Obtained by Fraud. Smith was sentenced to a term of 2 years, 6 months in prison and was also ordered to pay restitution in the amount of $2,499,999; while Percy was sentenced to 1 year, 3 months in prison and also ordered to pay restitution in the amount of $2,499,999. Both men entered guilty pleas in January. Smith was a long time employee of Beaulieu Carpets and Percy owned Glenwood Tufters , a carpet processing company in Dalton. For over three years, using his wife`s password, Smith manipulated Beaulieu`s computer system and diverted more than 3,931,000 pounds of first-quality yarn. Percy paid Smith more than $289,000 in kickbacks.