Attorneys representing the former Peanut Corp. of America owner and employees charged with conspiracy, mail and wire fraud, obstruction of justice and other counts involving the distribution of adulterated or misbranded food that allegedly led to a deadly Salmonella outbreak, had their opportunity on August 19, 2014, to cross-examine the company’s Blakely, Georgia, plant manager, Samuel Lightsey, who has been testifying as a government witness. United States v. Parnell, No. 13-cr-12 (M.D. Ga., Albany Div., filed February 15, 2013). Among other matters, the attorneys reportedly focused on the plea deal Lightsey struck with prosecutors; he was facing more than 30 years in prison, but could serve no more than six or go free if he substantially helps prosecute others. They also sought to show that (i) former owner Stewart Parnell was concerned about safety, (ii) Lightsey was responsible for plant safety, (iii) extensive retesting of samples positive for Salmonella came…
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Federal charges have been brought against two owners and two employees of Rancho Feeding Operations, a Petaluma, California-based livestock slaughterhouse, for distributing condemned and diseased cattle in violation of the Federal Meat Inspection Act. United States v. Amaral, No. 14-cr-437 (N.D. Cal., filed August 14, 2014); United States v. Singleton, No. 14-cr-441 (N.D. Cal., filed August 18, 2014). As a result of the investigation giving rise to the charges, Rancho voluntarily recalled some 8.7 million pounds of beef products in February 2014. According to the criminal indictment and information, Jesse Amaral and Robert Singleton, who owned the operation, allegedly directed Eugene Corda, Rancho’s primary yardperson, and Felix Cabrera, the facility’s foreperson, to either (i) remove “USDA Condemned” stamps from cattle carcasses and to process them for transport and distribution, or (ii) place the heads of healthy cows, swapped for diseased heads—from “cancer eye cows”—next to the carcasses of diseased animals while…
As the criminal prosecution of Peanut Corp. of America executives continues into its second week, the former south Georgia peanut-processing plant manager reportedly admitted lying to federal investigators about positive tests for Salmonella in company products and the frequency of testing “to play damage control, [and in an effort] to protect the company.” According to news sources, Samuel Lightsey, who agreed to plead guilty to seven criminal counts to reduce his potential prison sentence in exchange for his testimony against his former colleagues, also testified that the company cheated on safety testing by switching samples and shipping thousands of pounds of peanut products after learning they were contaminated or before testing could be completed. The contaminated peanut paste, traced to the Peanut Corp. facility, allegedly sickened more than 700 people and killed nine in a 2008-2009 Salmonella outbreak that led to one of the largest food recalls in U.S. history.…
According to New York Southern District U.S. Attorney Preet Bharara, a man who allegedly operated a wine counterfeiting laboratory from his California residence between 2004 and 2012 has been sentenced to 10 years in prison. Rudy Kurniawan apparently became a prominent and prolific U.S. dealer of rare and expensive wine that was actually lower-priced wine blended to mimic the taste and character of far better wines. He allegedly purchased empty bottles of rare and expensive wines—some of them from New York City restaurants—poured his mixtures into them, sealed the bottles, and then attached counterfeit labels that he created. The fakes were then sold to wealthy wine collectors through auctions and by direct sales. According to a news source, Kurniawan was eventually caught through misspellings and other packaging errors, including early 20th century dates on some bottles that pre-dated their actual production. Kurniawan also allegedly fraudulently obtained a $3-million loan from a…
While a number of jurors were dismissed because a two-month trial would create hardships for them, a 12-member jury and six alternates were selected on July 31, 2014, and opening statements began the next day in the criminal prosecution of former Peanut Corp. of America (PCA) owner Stewart Parnell, his brother Michael Parnell and the company’s quality control manager Mary Wilkerson. United States v. Parnell, 13-cr-12 (M.D. Ga.). Earlier in the week, the court denied Wilkerson’s motion to dismiss or alternatively for a continuance and severance and to compel meaningful discovery. She claimed that the government’s discovery disclosures “were not accompanied by easily searchable databases” and that she was not timely provided a password to access one of two discovery disclosures. The court had apparently considered some of these issues previously and found that “Wilkerson has not demonstrated any changed circumstances that would require the Court to reconsider its referenced…
A California federal court has dismissed fraud claims against R.C. Bigelow in a putative class action accusing the company of advertising that its tea “delivers healthful antioxidants” when the levels of antioxidants are too low to benefit the consumer. Victor v. R.C. Bigelow, No. 13-2976 (N.D. Cal., order entered July 18, 2014). The court allowed to proceed the plaintiff’s claim that Bigelow’s antioxidants assertion on its packaging violated California’s Unfair Competition Law (UCL) based on the “unlawful” prong, but it dismissed with prejudice his claims that Bigelow had violated the “fraud” prong of the UCL. Despite arguing the importance of the word “deliver,” the plaintiff failed to prove that the phrase “delivers healthy antioxidants” represented that the product contained a high enough level of antioxidants to provide health benefits to the tea drinker; as the court had previously allowed the plaintiff to amend his complaint, the claims relating to fraudulent…
A federal court in Georgia has delayed until July 28, 2014, the criminal proceedings against Stewart Parnell, former owner of the Peanut Corp. of America, which was implicated in a 2008-2009 nationwide Salmonella outbreak that sickened hundreds and led to at least nine deaths. United States v. Parnell, No. 13-cr-12 (M.D. Ga., order entered July 11, 2014). The defendants, including former vice president of sales Michael Parnell and former quality assurance manager Mary Wilkerson, had argued that they did not have time to review some 100,000 documents produced by the prosecution just days before the original July 14 trial date. The court refused to dismiss the 76-count felony indictment as an alternative remedy. Meanwhile, the court is also considering whether a Centers for Disease Control and Prevention (CDC) official should be allowed to testify during the trial, indicating that it would conduct a Daubert hearing to determine whether the testimony of CDC…
A federal court in Georgia has entered a number of orders in criminal proceedings, expected to go to trial July 14, 2014, against the former owner of the Peanut Corp. of America, implicated in a 2008-2009 nationwide Salmonella outbreak that sickened hundreds and led to at least nine deaths; among the orders was one denying the prosecution’s request for a psychiatric examination of Stewart Parnell. United States v. Parnell, No. 13-cr-12 (U.S. Dist. Ct., M.D. Ga., Albany Div., order entered July 10, 2014). Details about the criminal indictment appear in Issue 472 of this Update. While Parnell’s expert, whose testimony as to the defendant’s purported ADHD condition has been excluded, described Parnell as “fidgety, restless, excitable,” the court apparently found that this testimony did not otherwise indicate that Parnell would be unable to focus at trial. “Even if Stewart Parnell has an attention deficit disorder, Dr. Conley testified he is…
Following a hearing on the admissibility of expert testimony proffered as to Stewart Parnell’s ability to form the intent to commit alleged crimes arising from a national Salmonella outbreak linked to the Peanut Corp. of America, the company he formerly owned, a federal court in Georgia has excluded the expert, finding his testimony unhelpful and lacking a link to the criminal allegations. United States v. Parnell, No. 13-12 (U.S. Dist. Ct., M.D. Ga., Albany Div., order entered June 24, 2014). Details about the criminal charges appear in Issue 472 of this Update. Clinical psychologist Joseph Conley would have testified that Parnell has an Attention Deficit Hyperactivity Disorder condition that was so severe he likely never read, nor understood the significance of, many of the emails on which the government’s case relies. According to the court, “Dr. Conley’s testimony is a ‘diminished capacity defense’ designed to show that Parnell did not…
A federal court in Georgia presiding over the criminal case filed against the former owner of the Peanut Corp. of America, implicated in a nationwide Salmonella outbreak in 2009, has denied Stewart Parnell’s motion to seal an exhibit that the government intends to introduce as Rule 404(b) evidence— that evidence pertaining to crimes, wrongs or other acts. United States v. Parnell, No. 13-12 (U.S. Dist. Ct., M.D. Ga., Albany Div., order entered June 13, 2014). Details about the criminal charges appear in Issue 472 of this Update. Parnell claimed that the evidence, an email, is “highly prejudicial” and would taint the jury pool. The government argued that “the exhibit is a judicial document subject to the common law right of access.” The court agreed with the government, because the document was discovery material that had been filed in connection with Parnell’s motion in limine, seeking to keep it from being…
