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
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