Utz allegedly defrauded out of $1.4 million

A former employee and a vendor of Utz Quality Foods Inc. allegedly defrauded the company out of $1.4 million through a false invoice kickback scheme, according a news release Tuesday.

Kevin Myers, 38, formerly of Abbottstown Borough and Jonathan Haas, 45, of Easton, Pennsylvania, were charged in the U.S District Court in Harrisburg for allegedly orchestrating the scheme over the course of several years, according to the U.S. Attorney's Office for the Middle District of Pennsylvania.

Myers, a former director of purchasing for Utz, and Haas, owner of Haas Packaging and Design Inc., allegedly skimmed money from the company by submitting more than 80 false invoices and about 40 false purchase orders that were never actually received, the release states.

Haas Packaging and Design was hired to supply Utz with shelving and packaging products between January 2010 and August 2014, the release states.

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Myers allegedly approved Haas's false invoices for payment and would then receive a portion of the proceeds as a kickback. Haas reportedly received more than $1.4 million from Utz and kicked back a portion of that money, about $651,000, to Myers, according to the release.

The case was investigated by the FBI office in Harrisburg and is being prosecuted by Assistant U.S. Attorney Kim Douglas Daniel. The government also filed plea agreements for both men, which are subject to the approval of the court, the release states.

The government is seeking a forfeiture of the defrauded funds, the release states. Under federal law, the charges carry a maximum penalty of 20 years of imprisonment and a $250,000 fine.

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