The massive legal case from the former Le-Nature's Inc. bottled water and iced tea bottling plant in Latrobe, Pa., continues to make news as a former director, Robert Lynn, was found guilty in federal court of 10 counts of bank fraud, wire fraud and conspiracy.
Le-Nature's, which had new blow molding machines and PET preform injection presses, collapsed into bankruptcy in 2006. An investigation found that, although Le-Nature's reported audited sales of $275 million in 2005, the actual sales were as low as $32 million.
Gregory Podlucky, founder and CEO, has pleaded guilty and is slated to be sentenced Oct. 20. Under a plea agreement, Podlucky faces up to 20 years in prison, according to a spokeswoman for U.S. District Attorney David Hickton.
“The Le-Nature's fraud was the largest financial fraud in the history of the Western District of Pennsylvania,” Hickton said.
Lynn was found guilty July 28. He is scheduled to be sentenced Dec. 1.
Lynn ran Le-Nature's sales.