Fredericksburg grocery chain prez and Kelloggs salesman will be cleaning up on aisle 3 behind bars

From 2009 through 2013, Palmer and Farmer conspired to submit fraudulent documents regarding non-existent purchases to Kellogg’s and SuperValu. The appearance of greater than actual sales resulted in reduced net costs for Farmer’s Foods. As a result of the fraudulent submissions, SuperValu awarded Farmer’s Foods approximately $1.8 million in unearned deductions against its running account with SuperValu. Kellogg’s then reimbursed SuperValu for the awarded deductions. Palmer used his position at Kellogg’s to facilitate the fraud. In return, Farmer paid cash kickbacks to Palmer in the total amount of approximately half the value of the fraudulently obtained deductions

Continue Reading

Grocery salesman pleads guilty to defrauding wholesaler SuperValu but U. S. Attorney keeps name of president of grocery chain involved a secret…for now

Palmer faces a maximum penalty of 20 years in prison when he is sentenced on October 2, 2014, by Senior United States District Judge Robert E. Payne. In a statement of facts filed with the plea agreement, Palmer admitted that from 2009 through 2013, he conspired with an unindicted co-conspirator, the President of an unnamed grocery retail chain, to submit fraudulent documents to The Kellogg Company and SuperValu, a grocery wholesaler through which Kellogg sold product to retailers. SuperValu awarded the grocery retail chain approximately $1.8 million in deductions against its running account with SuperValu as a result of the fraudulent submissions. Kellogg reimbursed SuperValu for the awarded deductions.

Continue Reading