Former Le-Nature's CEO Owes $661MM in Restitution



The Pittsburgh Post-Gazette, citing an order from the U.S. District Judge Alan N. Bloch, reported that Gregory J. Podlucky, former CEO of Le-Nature’s, owes as much as $661 million in restitution to lenders and investors hurt by the 2006 collapse of the beverage maker.

The article noted that Podlucky owes Wachovia Bank $236 million, Manufacturers Traders Trust $156 million and CIT Group/Equipment Financing $112 million, plus millions more to other entities, citing the judge’s order.

According to the report, Judge Bloch found that five other business associates, all of whom have yet to be sentenced, may also have to contribute to the $661 million restitution.

As previously posted on monitordaily, the Le-Nature’s scheme siphoned hundreds of millions of dollars from several financial institutions and it completed, with Wachovia Bank as lead lender, a financing package including a $20 million revolving credit agreement and a $265 million term loan. Recently, Wells Fargo’s Wachovia Capital Markets unit and BDO Seidman settled lawsuits over their roles in the collapse of Le-Nature’s for $130 million.

To read the full Post-Gazette article click here.

Previously on monitordaily: Former Le-Nature’s CEO Sentenced to 20 Years for Fraud, published October 21, 2011


Like this story? Begin each business day with news you need to know! Click here to register now for our FREE Daily E-News Broadcast and start YOUR day informed!

Leave a comment

No tags available

View Latest Digital Edition

Terry Mulreany
Subscriptions: 800 708 9373 x130
[email protected]
Susie Angelucci
Advertising: 484.459.3016
[email protected]

View Latest Digital Edition

Visit our sister website for news, information, exclusive articles,
deal tables and more on the asset-based lending, factoring,
and restructuring industries.
www.abfjournal.com