Marketplace   Menu Guide   Complete Pages      
butler eagle
Site last updated: Friday, December 19, 2014 Bookmark our site!
Local PennsylvaniaNationalInternationalNews Extras  
Published: November 7, 2012 print this article Print save this article Save email this article Email ENLARGE TEXT increase font decrease font

Company to pay $15M penalty in fraud case

PITTSBURGH — A Wisconsin bottling equipment firm will pay a $15 million penalty to avoid prosecution and has agreed to pay $110 million more to settle legal claims for its role in a massive accounting fraud involving defunct Western Pennsylvania soft-drink maker, Le-Nature’s.
Franklin, Wis.-based Krones Inc. says it cut the deal to avoid the “continued uncertainty and risk” involved in the legal proceedings, but denies any role in the fraud.
Federal prosecutors in Pittsburgh say Krones helped Le-Nature’s officials deceive lenders about the cost of bottling equipment the soft-drink company financed, so Le-Nature’s could borrow $118 million more than it needed for the equipment.
Le-Nature’s founder Gregory Podlucky is serving a 20-year sentence for masterminding an accounting scheme in which Le-Nature’s fraudulently obtained $875 million in financing before creditors forced Le-Nature’s into bankruptcy in 2006.

Order Photos!
arrow No new improprieties found in state email files
arrow Overnight fire fatal
arrow Man dies on icy I-79
arrow Icy roads result in accidents
arrow County faces discrimination complaint
arrow None of your business
arrow With no funds, downtown group lays off manager
arrow Police catch pair caught