Updated: 06/01/2011 03:22:31 PM CDT

http://www.twincities.com/business/ci_18183719?nclick_check=1

What started with an apparent lightning strike, damage to supercomputers and a $9.5 million insurance claim ended Tuesday with a guilty plea in federal court.

Travis Magdalena Scott, 34, of Eden Prairie, pleaded guilty to one count of wire fraud and one count of money laundering, as part of a plea agreement with prosecutors.

Instead of using the money to buy new computers, prosecutors say he used it for personal gain, including the purchase of a Beech aircraft that he kept at Flying Cloud Airport.

Scott had an insurance policy for his company - Security Management Consultants, of Eden Prairie - with Zurich North America. A year after obtaining the insurance policy, in 2008, he said lightning struck Security Management and that he wanted to use the replacement option on that policy.

He told Zurich that he had ordered a new computer system and that it had been delivered. The insurance company delivered three checks to Scott totaling $9.5 million.

Last November, law enforcement officers executed search warrants at Scott's home and at a hangar at Flying Cloud Airport in Eden Prairie.

Prosecutors say he cheated Zurich out of at least $7 million.

He faces a maximum sentence of 20 years on the wire fraud count and 10 years on the money laundering count. Sentencing will take place in coming weeks.