The government is handing down more criminal charges in a poultry price fixing scheme that went on for nearly a decade across the United States.
Four former executives at Pilgrim's Pride, one of the largest poultry producers in the U.S., have been indicted by a federal grand jury in an alleged price fixing conspiracy for broiler chicken products.
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An indictment alleges that former executives Jason McGuire, Timothy Stiller, Wesley "Scott" Tucker and Justin Gay conspired to suppress competition for sales of broiler chickens -- raised specifically for meat production and sold to grocers and restaurants -- by rigging bids and fixing prices.
According to the indictment, the business practices of the four executives "substantially affected interstate trade and commerce." The four are charged with violations of the Sherman Antitrust Act.
Separately, a second indictment returned Thursday also charges Illinois-based Koch Foods with participating in the nationwide conspiracy to fix prices and rig bids for broiler chicken products.
In a statement posted to Koch Foods' website, the company said it "steadfastly denies that it or any of its employees engaged in price fixing."
Koch's senior vice president, William Kantola, is among ten people indicted in October 2020 for their roles in the conspiracy.
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Colorado-based Pilgrim's Pride pleaded guilty to the conspiracy in February 2021 and was ordered to pay a fine of $107 million to settle federal charges it conspired to fix chicken prices and passed on the costs to consumers and other purchasers. The government says the company recorded at least $361 million in sales of broiler chicken products during the scheme. The company also reached a $75 million settlement with a number of chicken buyers in an antitrust class-action lawsuit filed in 2016.
The case is the result of an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the broiler chicken industry. Investigators say the long-running conspiracy began as early as 2012 and lasted until at least 2019.
"Price fixing is not a victimless crime, and the illegal actions taken by these companies and individuals in the broiler chicken industry have had a direct and negative impact on the American consumer," the FBI's Steven D'Antuono said in a statement.
McGuire, Stiller, Tucker and Gay are expected to make their initial court appearances on Aug. 11 in U.S. District Court in Colorado. Koch Foods’ initial appearance is also scheduled on Aug. 11. The Sherman Act carries a maximum penalty of 10 years in prison and a $1 million fine for individuals, and a $100 million fine for corporations.
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