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Former Utz exec charged with fraud

A former Utz Quality Foods Inc. executive has pleaded guilty to charges of defrauding the company for over $1.4 million.

The U.S. attorney's office for the Middle District of Pennsylvania made the announcement on Tuesday. Kevin Myers, a previous Abbottstown resident and former Director of Purchasing for Utz, pleaded guilty to a one count information charging him with wire fraud.The plea was presented to U.S. Magistrate Judge Susan E. Schwab in Harrisburg.The Harrisburg office of the FBI handled the investigation, with cooperation from Utz. Assistant U.S. Attorney Kim Douglas Daniel is serving as prosecutor for the case.This past June, Myers and Jonathan Haas, 45, the former owner of Bethlehem's Haas Packaging and Design Inc., were charged with wire fraud. Haas allegedly conducted an interstate wire for $26,000 to a bank account held by "Myers Packaging Consulting," a fake business created by Myers in January 2014. The information was filed pursuant to a plea agreement with Myers and Haas.U.S. Attorney Peter Smith said that between January 2007 and August 2014, Haas Packaging and Design supplied Utz with shelving and packaging products.Haas apparently submitted 83 fake invoices and about 43 false purchase orders that were prepared by Myers, all for products that Utz never received.When Myers approved the invoices, Haas would allegedly provide a portion of the proceeds as a kickback to Myers. The false invoices amounted to about $1,474,765 from Utz, with a payout to Myers totaling roughly $651,000. Some of the kickbacks were concealed as consulting fees to Myers's fake company.In addition to the wire fraud charges, the government will be seeking forfeiture of the $1.4 million as proceeds from the scheme. Sentencing for Myers is pending, with federal regulations limiting the maximum penalty to a 20-year prison term, with supervised release following the term, as well as a $250,000 fine.