The indictment can be viewed here http://www.justice.gov/iso/opa/resources/61201322111426350488.pdf. One of the more colorful emails captured in the indictment is this.
Also facing charges are the Operations Manager and the QA Manager. While we do not know to what extent they were following orders versus actively participating, we certainly can guess that they were not making large sums of money off the transactions compared to the owner and his brother. We can also guess that they did not have the level of knowledge required with regard to the actions they were taking. From the indictment:
While the vast majority of food companies here in the US produce safe food, there are still too many companies who do not put a premium on hiring and developing a well-trained technical support staff, or giving them a voice in making risk-based decisions. And there are still too many companies where the decision makers are inadequately versed in the technical aspects of the products they make, including food safety. Hopefully the outcome of this case will become a shot-across-the-bow for these companies.
By SABRINA TAVERNISE
Published: February 21, 2013 NY Timeshttp://www.nytimes.com/2013/02/22/business/us-charges-former-owner-and-employees-in-peanut-salmonella-case.html?_r=0
Federal prosecutors have filed criminal charges against the former owner and several employees of a now-defunct peanut company that was the source of a salmonella outbreak in 2009 that killed nine people and sickened more than 700. In a 76-count indictment unsealed on Wednesday, investigators charged Stewart Parnell, 58, the former owner of the Peanut Corporation of America, or P.C.A., with criminal fraud and conspiracy, for his role in what they said was a scheme to ship peanut products known to be contaminated to customers in states across the country.
The salmonella outbreak was one of the deadliest in United States history, resulting in recalls of thousands of products made by more than 300 companies, according to Food Safety News.
The law firm representing Mr. Parnell said it was disappointed by the indictment. “As this matter progresses it will become clear that Mr. Parnell never intentionally shipped or intentionally caused to be shipped any tainted food products capable of harming P.C.A.’s customers,” said a statement from the firm, Gentry Locke Rakes & Moore.
Carl Tobias, a professor at the University of Richmond School of Law, said it was unusual for the federal government to pursue criminal charges in food safety cases, which usually involve negligence. But in this case, federal prosecutors said there was evidence that the defendants knowingly shipped products that had been contaminated or never tested, and misled customers and federal agents about it.
Michael Moore, United States attorney for the Middle District of Georgia, said in a statement that the defendants “cared less about the quality of the food they were providing to the American people and more about the quantity of money they were gathering while disregarding food safety.”
The indictment said that Mr. Parnell and three other people, two of them employees and one of them a broker associated with the company, who is also Mr. Parnell’s brother, misled customers about the quality of the company’s peanut products. A fifth person pleaded guilty in a separate filing connected to the case.
When laboratory testing revealed the presence of salmonella in peanut products from a plant in Blakely, Ga., the indicted people did not notify customers of the results, according to the indictment.
The indictment also described a scheme to fabricate so-called certificates of analysis that accompanied shipments to summarize for customers the results of tests on the products. On several occasions, the indictment contended, employees stated that shipments were safe, when in fact they were contaminated or had not been tested at all.
The company had gross sales totaling about $30 million in 2008, according to the indictment. It filed for bankruptcy in 2009.
The indictment quoted from what prosecutors said were e-mails from the defendants. When an employee said in an e-mail in 2007 that containers of peanut meal were covered in dust and rat feces, Mr. Parnell’s response was, “Clean em’ all up and ship them.”
In another e-mail in 2008, Mr. Parnell scolded employees for wasting peanuts, saying, “These are not peanuts you are throwing away every day, it is money, it is money,” according to the indictment.
Department of Justice
Office of Public Affairs
FOR IMMEDIATE RELEASE
Thursday, February 21, 2013Former Officials and Broker of Peanut Corporation of America Indicted Related to Salmonella-Tainted Peanut Products
Allegations Include Mail and Wire Fraud, Introduction of Adulterated and Misbranded Food into Interstate Commerce with Intent to Defraud or Mislead, and Conspiracy
A 76-count indictment was unsealed yesterday charging four former officials of the Peanut Corporation of America (PCA) and a related company with numerous charges relating to salmonella-tainted peanuts and peanut products, the Justice Department announced today. Stewart Parnell, 58, of Lynchburg, Va.; Michael Parnell, 54, of Midlothian, Va.; and Samuel Lightsey, 48, of Blakely, Ga., have been charged with mail and wire fraud, the introduction of adulterated and misbranded food into interstate commerce with the intent to defraud or mislead, and conspiracy. Stewart Parnell, Lightsey and Mary Wilkerson, 39, of Edison, Ga., were also charged with obstruction of justice.
Also yesterday, an information filed against Daniel Kilgore, 44, of Blakely was unsealed. On the same day that charges against Kilgore were filed, he pleaded guilty to that information, which charged him with mail and wire fraud, the introduction of adulterated and misbranded food into interstate commerce with the intent to defraud or mislead, and conspiracy.
The investigation into the activity at PCA began in 2009, after the Food and Drug Administration and the U.S. Centers for Disease Control and Prevention traced a national outbreak of salmonella to a PCA plant in Blakely as the likely source. As alleged in the indictment, the Blakely plant was a peanut roasting facility where PCA roasted raw peanuts and produced granulated peanuts, peanut butter, and peanut paste; PCA sold these peanut products to its customers around the country.
The charging documents charge that Stewart Parnell, Michael Parnell, Lightsey and Kilgore participated in a scheme to manufacture and ship salmonella-contaminated peanuts and peanut products, and in so doing misled PCA customers. As alleged in the indictment, those customers ranged in size from small, family-owned businesses to global, multibillion-dollar food companies.
“When those responsible for producing or supplying our food lie and cut corners, as alleged in the indictment, they put all of us at risk,” said Stuart F. Delery, who heads the Justice Department’s Civil Division. “The Department of Justice will not hesitate to pursue any person whose criminal conduct risks the safety of Americans who have done nothing more than eat a peanut butter and jelly sandwich.”
Although PCA is now no longer in business, the allegations against each of the defendants arise from his or her conduct while at PCA and a related company. The following allegations are set forth in the indictment: Stewart Parnell was an owner and president of PCA; Michael Parnell, who worked at P.P. Sales, was a food broker who worked on behalf of PCA; Lightsey was the operations manager at the Blakely plant from on or about July 2008 through February 2009; and Wilkerson held various positions at the Blakely plant – receptionist, office manager and quality assurance manager – from on or about April 2002 through February 2009. As charged in the information, Kilgore served as operations manager of the PCA plant in Blakely from on or about June 2002 through May 2008.
“We all place a great deal of trust in the companies and individuals who prepare and package our food, often times taking it for granted that the public’s health and safety interests will outweigh individual and corporate greed,” said Michael Moore, U.S. Attorney for the Middle District of Georgia. “Unfortunately and as alleged in the indictment, these defendants cared less about the quality of the food they were providing to the American people and more about the quantity of money they were gathering while disregarding food safety. This investigation was complex and extensive, and I credit the cooperation of our federal agencies with not only making sure that the cause of this outbreak was uncovered and the people responsible called to account, but also with working hard every day to make sure that parents across the country can feel confident that the food they are feeding their children is safe.”
The charging documents allege that Stewart Parnell, Michael Parnell, Lightsey and Kilgore participated in several schemes by which they defrauded PCA customers about the quality and purity of their peanut products and specifically misled PCA customers about the existence of foodborne pathogens, most notably salmonella, in the peanut products PCA sold to them. As the charging documents allege, the members of the conspiracy did so in several ways – for example, even when laboratory testing revealed the presence of salmonella in peanut products from the Blakely plant, Stewart Parnell, Michael Parnell, Lightsey and Kilgore failed to notify customers of the presence of salmonella in the products shipped to them.
In addition, the charging documents allege that Stewart Parnell, Michael Parnell, Lightsey and Kilgore participated in a scheme to fabricate certificates of analysis (COAs) accompanying various shipments of peanut products. COAs are documents that summarize laboratory results, including results concerning the presence or absence of pathogens. As alleged in the charging documents, on several occasions these four defendants participated in a scheme to fabricate COAs stating that shipments of peanut products were free of pathogens when, in fact, there had been no tests on the products at all or when the laboratory results showed that a sample tested positive for salmonella.
After the salmonella outbreak that gave rise to this investigation, FDA inspectors visited the plant several times in January 2009. According to the indictment, the inspectors asked specific questions about the plant, its operations, and its history, and, in several instances, Stewart Parnell, Lightsey and Wilkerson gave untrue or misleading answers to these questions.
“The charges announced today show that if an individual violates food safety rules or conceals relevant information, we will seek to hold them accountable,” said FDA Commissioner Margaret A. Hamburg, M.D. “The health of our families and the safety of our food system is too important to be thwarted by the criminal acts of any individual or company.”
Stewart Parnell, Michael Parnell, and Samuel Lightsey are each charged with two counts of conspiracy; multiple counts of introducing adulterated food into interstate commerce with the intent to defraud; multiple counts of introducing misbranded food into interstate commerce with the intent to defraud; multiple counts of interstate shipment fraud; and multiple counts of wire fraud. Stewart Parnell, Lightsey and Wilkerson are also charged with multiple counts of obstruction of justice.
Kilgore pleaded guilty to one count of conspiracy to commit fraud, one count of conspiracy to introduce adulterated and misbranded food into interstate commerce, eight counts of introducing adulterated food into interstate commerce with the intent to defraud, six counts of introducing misbranded food into interstate commerce with the intent to defraud, eight counts of interstate shipment fraud, and five counts of wire fraud.
Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated, “The FBI was brought in to this matter to provide additional resources and expertise to a complex and very serious investigation. We fully understand the victim impact as a result of this salmonella outbreak and will be asking to hear from other possible victims in this matter.”
Individuals who feel that they may have been affected by or have become ill from tainted PCA products, and businesses that purchased products that were recalled as a result of the outbreak, should visit the following website for further details: https://forms.fbi.gov/pca-salmonella-tainted-product-case/
The case is being prosecuted by Trial Attorneys Patrick Hearn and Mary M. Englehart of the Consumer Protection Branch of the Civil Division of the Department of Justice and Assistant U.S. Attorney Alan Dasher of the Middle District of Georgia. Marietta Geckos, formerly a Trial Attorney with the Consumer Protection Branch, also worked on the prosecution. The case was investigated by the Food and Drug Administration’s Office of Criminal Investigations and the FBI.
An indictment is merely an allegation, and every defendant is presumed innocent until proven guilty beyond a reasonable doubt.