By: John A. Schwab
On February 10, 2011, United States Attorney for the Western District of Pennsylvania, David J. Hickton, announced a new indictment naming the former Le-Nature’s Inc. chief executive, Gregory J. Podlucky, as part of a larger fraud case allegedly involving over $800 million. The five-count indictment dated February 8, 2011 charges Podlucky; his wife, Karla S. Podlucky; and his son, G. Jesse Podlucky; with money laundering and conspiracy.
The three defendants are alleged to have purchased jewels and precious metal with LeNature’s money which were later sold at Sotheby’s auctions in New York City. The indictment also claims that the laundered money was then used to pay for the Podluckys’ attorneys’ fees, credit card bills, and the lease on a Mercedes Benz. LeNature’s was a bottling company based in the Western District of Pennsylvania, until November 2006, when it filed for bankruptcy and is presently in liquidation.
The recent Podlucky indictments follow the September 2009 indictment of Gregory Podlucky and others which alleges bank fraud, wire fraud, mail fraud, and conspiracy between 2000 and 2006 against Podlucky, his brother, a business partner, and trusted advisors. More specifically, the LeNature’s CEO and his co-defendants allegedly produced false financial statements regarding the business activity and financial condition of the company, which were forwarded to investors and lenders. The indictment also alleges that the defendants then used false documents to mislead external auditors that LeNature’s false financial statements were indeed accurate. In the 2009 announcement, then-U.S. Attorney Mary Beth Buchanan stated that the fraud amounted to $806 million and is believed to be the largest in the history of the Western District of Pennsylvania. This case is scheduled for trial in July 2011 before the Honorable Alan N. Bloch.
A colleague and I had a conversation recently about Uber drivers and other ride-sharing platforms who are using ‘dash-cams’ to film the road ahead or passengers. These types of cameras protect drivers from claims of inappropriate conduct or dangerous driving and they’re starting to pop up in many vehicles. My colleague had “taken an Uber”… Read more »Read More
Join Pietragallo Partner Michael A. Morse for a web conference on Wednesday, October 23 at 1:00 pm EST. Hosted by the Health Care Compliance Association, Mr. Morse will discuss: The Supreme Court’s latest FCA decision, which delivered two important victories for whistleblowers The Supreme Court’s active interest in the shaping False Claims Act litigation How… Read more »Read More
Joe Gordon and Leslie Mariotti will be presenting at the Greater Valley Forge HR Summit in Malvern, PA on October 25, 2019. The presentation is titled, “Employee Benefits of the Future – How Legal Developments Will Drive Profound Change.” In this presentation, Mr. Gordon and Mrs. Mariotti will explore cultural pressures and the evolution of… Read more »Read More