Former Blue Bell Creameries CEO Paul Kruse charged with wire fraud in 2015 contamination

[TexasTowelie]

Former Blue Bell Creameries President and CEO Paul Kruse has been charged with wire fraud and conspiracy in connection to an alleged scheme to cover up sales of listeria-tainted ice cream in 2015, officials said.

According to the Department of Justice, Kruse was charged with seven counts of wire fraud and conspiracy to commit wire fraud related to his alleged efforts to conceal from customers what the company knew about listeria contamination in certain products. The indictment was filed in federal court in Austin.

The indictment states officials notified Blue Bell in February 2015 that products from the company's Brenham factory had tested positive for listeria and Kruse allegedly orchestrated a scheme to deceive customers, including by directing employees to remove potentially contaminated products from store freezers without notifying retailers or consumers as to why. Kruse is also accused of directing employees to tell customers there was an unspecified issue with a manufacturing machine. The company did not immediately recall the products or inform customers about the potential contamination, the indictment states.

Charges against Kruse were dropped in July by a U.S. district judge. The order of dismissal document for the United States versus Kruse was signed by Judge Robert Pitman of the Western district of Texas — Austin Division, stating the dismissal was granted on the grounds of “lack of subject-matter jurisdiction.

Read more: https://theeagle.com/news/local/former-blue-bell-creameries-ceo-paul-kruse-charged-with-wire-fraud-in-2015-contamination/article_6e9781d0-13e8-11eb-8cfb-67b734aae6a1.html
(Bryan-College Station Eagle)

[Demovictory9]

1. wow. I didnt know there had been an attempt to conceal

[BusyBeingBest]

2. Listeria has a high fatality rate for a food borne illness.

This isn't something that just gives you the squirts for a couple days. The Colorado cantaloupe fiasco comes to mind for a high death rate. This guy was really gambling with the health and life of anyone who consumed the product.

[OneBro]

3. Hmph. I thought "wire fraud" was about wiring money.

The charge didn’t make since until I googled it:

18 U.S.C. § 1343 provides:

Whoever, having devised or intending to devise any scheme or artifice to defraud, or for obtaining money or property by means of false or fraudulent pretenses, representations, or promises, transmits or causes to be transmitted by means of wire, radio, or television communication in interstate or foreign commerce, any writings, signs, signals, pictures, or sounds for the purpose of executing such scheme or artifice, shall be fined under this title or imprisoned not more than 20 years, or both. If the violation affects a financial institution, such person shall be fined not more than $1,000,000 or imprisoned not more than 30 years, or both.

Interesting. The stuff ya don’t know.