 |
 |
United States Attorney Eric Melgren
District of Kansas
FOR IMMEDIATE RELEASE
News releases are available at www.usdoj.gov/usao/ks/
Contact: Jim Cross
Phone: (316) 269-6481
Fax: (316) 269-6420
Nov. 22, 2006
MEN SENTENCED IN CONSPIRACY TO STEAL FROM NATION’S LARGEST FOOD MANUFACTURERS
KANSAS CITY, KAN. – Two former sales representatives for a food brokerage in Kansas City, Kan., were sentenced Monday for their parts in a conspiracy to defraud some of the nation’s largest manufacturers including Tropicana and Con Agra Frozen Foods.
Terry Lee Esteb, 63, Independence, Mo., and James S. Jirik, 40, Topeka, Kan., each were sentenced to 5 years probation and a $3,000 fine. They appeared for sentencing before U.S. District Judge Carlos Murguia.
“Mr. Esteb’s sentence includes 6 months home confinement with electronic monitoring,” said U.S. Attorney Eric Melgren. “Mr. Jirik’s sentence includes 4 months home confinement with electronic monitoring.”
Both defendants pleaded guilty in August to one count of conspiracy to commit mail fraud. In their pleas, they admitted that from 1983 to April 5, 2002, they took part in a conspiracy to defraud food manufacturers. Esteb and Jirik worked as sales representatives for Advantage Sales and Marketing of Overland Park, Kan. The company was a food brokerage business that obtained goods from food manufacturers, which it supplied to individual grocery stores.
They admitted conspiring with Gerald A. Brown of Lee’s Summit, Mo., Augustine Salinas of Gladstone, Mo., Ronald P. Forrest of Independence, Mo. The conspirators used the U.S. mail to submit false paperwork to food manufacturers seeking payment for lost or damaged merchandise. The fraudulent claims stated that the money was owed to Ball Food Stores. When the food manufacturers issued checks and mailed them to Ball Food Stores, the defendants intercepted the checks and cashed them.
The conspirators also removed grocery items from Price Chopper and House grocery stores in metropolitan Kansas City for their own use or to sell to smaller grocers. They would issue store credits to store managers for items they removed and then submit a request to the food manufacturers for checks to cover the cost of the items. When the conspirators sold the items to smaller grocers, they pocketed the cash.
Among the other defendants:
– Salinas pleaded guilty to one count of conspiracy to commit mail fraud and was sentenced to 5 years probation and $66,414 in restitution.
– Brown pleaded guilty to one count of conspiracy to commit mail fraud and is set for sentencing Dec. 11.
– Forrest pleaded guilty to one count of conspiracy to commit mail fraud and is set for sentencing Dec. 4.
Melgren commended the Federal Bureau of Investigation and Assistant U.S. Attorney Kim Martin for their work on the case.