Wisconsin-based Krones to pay $15 million in Le-Nature’s case
PITTSBURGH—A Wisconsin bottling equipment firm has agreed to pay a $15 million penalty to avoid prosecution for its alleged role in the massive accounting fraud involving defunct western Pennsylvania soft-drink maker, Le-Nature’s.
Officials with Krones Inc., in Franklin, Wisc., say they plan to release a statement later Thursday.
Federal prosecutors in Pittsburgh say the penalty will resolve allegations that Krones helped Le-Nature’s officials to deceive lenders about the cost of bottling equipment the soft-drink company financed. Authorities say Krones must also repay lenders who lost money, meaning the non-prosecution agreement will cost Krones about $125 million total.
Le-Nature’s founder Gregory Podlucky is serving a 20-year sentence for masterminding an accounting scheme in which the company fraudulently obtained $875 million in credit and equipment leases before creditors forced Le-Nature’s into bankruptcy in 2006.
