Le-Nature scandal

Gregory Podlucky is the former head of a Pennsylvania soft drink maker, Le-Nature Inc.  He was sentenced to 20 years in prison for a massive accounting fraud and money laundering scheme.  He and four other employees at the company were involved in an $806 million fraud.The CEO Podlucky cooked the companies books to get loans and equipment leases.  The fraud resembled a corporate ponzi scheme.  He and his associates falsified their level of business activity and created fraudulent company financial statements that inflated their assets by substantial amounts.  They transferred funds among various accounts to document fictitious transactions that gave the appearance of sales revenues.  They used two sets of books to inflate financial statements which helped them obtain $875 million in credit and equipment leases.  The company was forced into bankruptcy in 2006 by creditors which helped uncover the fraud.  The fraud cost investors and lendors $684 million.  Podlucky stole an estimated $30 million from the company to fund his lavish lifestyle.  His wife and son were just recently sentenced to prison for their involvement in the scandal.