A former machinist accused of bilking $67 million from a Greyhound Corp. subsidiary pleaded guilty to three counts Wednesday as part of an agreement.

J.R. Willyard faces up to five years in prison and another five years probation if U.S. District Judge Earl Carroll accepts the plea Aug. 1, when Willyard is scheduled to be sentenced.

Willyard pleaded guilty to two counts of mail fraud and one of conspiracy in defrauding Phoenix-based Greyhound Leasing and Financial Corp. with his business partner, Sheldon Player.

Willyard had faced retrial after a jury was unable to reach a decision in April.

According to court records, Willyard and Player borrowed $67 million from the leasing company and said they were going to use it to buy heavy equipment they would lease to a third party.

The two then used the money themselves and never bought any of the equipment.

Player agreed to plead guilty on three counts of fraud in the scheme and to help Greyhound and prosecutors find the money and identify others involved in the fraud.

About $48 million was returned to Greyhound after Player's assets and real estate were sold.