Exec to plead guilty in tomato price-fixing case
FRESNO, Calif. (AP) - A former executive for a California-based
tomato processor agreed to plead guilty to participating in a
conspiracy to drive up food prices nationwide, federal prosecutors
said Wednesday.
Alan Scott Huey, who served as a senior vice president at SK
Foods between 2004 and 2008, is accused of taking part in a scheme
to bribe purchasing agents from major food companies to buy tomato
products from the Monterey company rather than its competitors.
The products were then allegedly sold at inflated prices. Some
of the food companies included Kraft Foods Inc., Frito-Lay Inc. and
B&G Foods Inc.
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Huey, 53, also was facing a charge stemming from an alleged SK
Foods shipment of tomato products with mold levels that exceeded
federal limits. But prosecutors have agreed to drop that charge in
exchange for Huey's cooperation in an ongoing federal investigation
into the tomato industry, said Lauren Horwood, a spokeswoman for
the U.S. Attorney's Office.
The probe has already led to convictions against other SK Foods
employees as well as employees at Kraft, Frito-Lay and B&G Foods,
prosecutors said.
``The effect of this conspiracy was to provide lower quality
processed tomato products at inflated prices,'' U.S. Attorney
Lawrence Brown said in a statement.
Huey is expected to appear in court Nov. 17 to enter his plea,
Horwood said. He faces up to five years in prison and a $250,000
fine if convicted on the conspiracy charge.
A message for Huey's attorney was not immediately returned.
11/04/09 19:41
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