FREE SUBSCRIPTION Includes: The Advisor Daily eBlast + Exclusive Content + Professional Network Membership: JOIN NOW LOGIN
Skip Navigation LinksHome / Blogs / Read Blog

Print

Le-Nature’s President Sentenced to Fifteen Years for Fraud

January 04, 2012, 07:30 AM
By
Topic: Industry News

The Pittsburgh Post-Gazette reported Robert B. Lynn, the former president of Latrobe-based bottler Le-Nature’s Inc. was sentenced today to 15 years in prison for his role in the company’s massive financial fraud. Lynn went to trial in July and was convicted of a total of 10 counts of bank fraud, wire fraud and fraud conspiracy.
 
According to the report, U.S. District Judge Alan N. Bloch said that federal guidelines suggest a 27 to 34 year sentence. But for Mr. Lynn, who was 67 at the time of trial, which would amount to a death sentence. So following a 15-year prison term, Mr. Lynn will be under federal supervision for another five years.

He was also ordered to pay a share of a $661,324,330 bill of restitution to the lenders and investors who were victimized by Le-Nature's, using half of his prison income and 15% of his post-release earnings according to the report.

The report also states Tammy Andreycak, the accounting director whose cooperation with federal agents was instrumental in prosecuting other associates of the defunct bottling firm, was sentenced to five years in prison. Ms. Andreycak, 44, of Latrobe, was one of two people, along with Mr. Podlucky, who knew of the extent of the fraud at the company, which landed around $800 million in loans before its collapse.

She also was ordered to repay, along with other former Le-Nature's associates, $261,682,963 to Wachovia Bank and AIG Commercial Equipment Finance, the primary victims in the Le-Nature's scheme. Half of her prison income, and one-tenth of her post-release income, will go to the victims according to the report.


 

Comments From Our Members

You must be an Equipment Finance Advisor member to post comments. Login or Join Now.