A former Pennsylvania potato chip company executive pleaded guilty to defrauding the company out of approximately $1.4 million in a false invoice kickback scheme.
On Tuesday, Kevin Myers, 38, acknowledged receiving $651,000 in kickbacks while employed as the director of purchasing for Utz Quality Foods, Inc. of Hanover, Pennsylvania which produces snacks under the brand names Utz, Zapp’s, Bachman and Dirty.
According to the United States Attorney’s Office, Myers received the money from Jonathan Haas, 45, the former owner of Haas Packaging and Design, Inc. in Bethlehem, Pennsylvania. Myers and Haas were charged in June of this year with wire fraud.
United States Attorney Peter Smith says Haas Packaging & Design was a vendor that supplied Utz with shelving and packaging products between January 2007 and August 2014. During this time, Smith says the defendants allegedly defrauded Utz by submitting 83 bogus invoices for $1.4 million in products Utz never actually received. After Myers approved Haas’ false invoices for payment, Haas allegedly would kickback a portion of the proceeds to Myers.
The Associated Press reported Haas’ attorney says his client plans to plead guilty as well, but disputes the amount of losses attributed to him.