Koch Foods was indicted by a federal grand jury in Denver, Colorado, for its participation in a nationwide conspiracy to fix prices and rig bids for broiler chicken prices. Four executives at Pilgrim’s Pride were also charged for their roles in the same conspiracy in a separate grand jury, the U.S. Department of Justice (DOJ) announced July 29.
The indictment alleges that “the defendants and co-conspirators conspired to suppress and eliminate competition for sales of broiler chicken products,” according to a DOJ press release. Koch Farms and each of the four executives are each being charged with a violation of the Sherman antitrust act.
In a statement on the Koch Foods website, the company said there is “ no evidence to date that it or any of its employees have committed any crime,” and that the company feels it “must vigorously defend itself against DOJ’s allegations.”
“During DOJ’s lengthy investigation, it has repeatedly asked Koch to plead guilty, and has suggested that any punishment would potentially be lessened if Koch did that. We are aware that this would certainly be the easiest way to resolve this case. However, we have very carefully considered this option and in good conscience cannot agree.”
More Pilgrim’s Pride executives charged
According to court documents, the four former employees of Pilgrim’s Pride that received indictments were Jason McGuire, a former executive vice president of sales for prepared foods; Timothy Stiller, a former general manager of fresh food services and small bird debone; Wesley “Scott” Tucker, a former national accounts sales executive; and Justin Gay, a former director of fresh foodservice sales.
Koch Foods, McGuire, Stiller, Tucker and Gay are all scheduled to appear before U.S. Magistrate Judge Crews of the U.S. District Court for Colorado on August 11. If found guilty, individuals face 10 years in prison and a $1 million fine, while corporations would owe $100 million.
Koch’s senior vice president, William Kantola, was previously charged in October 2020 – alongside 10 other individuals – for their roles in the conspiracy, the DOJ said. Earlier this year, Claxton Poultry received an indictment for its role in the same conspiracy, while Pilgrim’s Pride agreed to a plea agreement for the charges of price fixing.
“As today’s charges show, the division remains committed to holding both individuals and companies accountable when they choose profits over following the law,” Richard Powers, acting assistant attorney general of DOJ’s Antitrust Division, said in a statement. “Our investigation into criminal price fixing of broiler chickens continues, and we will not stop until we ensure that wrongdoers are held accountable and competition is restored to this critical industry.”