Former Utz exec gets prison for $1.4 million fraud
A former executive at Utz Quality Foods in Hanover was sentenced Tuesday to more than four years in federal prison for defrauding the company of more than $1.4 million.
Kevin Myers, 38, formerly of Abbottstown, was sentenced by U.S. District Court Judge Yvette Kane in Harrisburg and must report to federal prison Jan. 16 to begin his 51-month sentence for a wire fraud conviction, according to a news release from U.S. Attorney Bruce Brandler.
Myers served as the director of purchasing for Utz and used his position to set up a kickback scheme with Jonathan Haas, owner of Haas Packaging & Design in Easton.
Between January 2010 and August 2014, Myers prepared 43 bogus purchase orders and Haas submitted 83 false invoices for shelving and packaging products that Utz never received, according to charging documents.
As purchasing director, Myers approved the false invoices from Haas, after which Haas would give a portion of the money to Myers. Haas received almost $1.475 million from the false invoices and paid Myers about $651,000 over the 44-month period, documents state.
Myers set up Myers Packaging Consulting as a front to conceal the large transactions as “payments for fictional business consultation services,” according to charging documents.
Myers and Haas each pleaded guilty to a wire fraud charge in July. Haas is scheduled to be sentenced by Judge Kane on Jan. 12.
The men are required to pay $975,000 in restitution to Utz and to reimburse $500,000 to the insurance company that covered some of Utz’s losses from the kickback scheme, according to court documents.