Owner of Cheese Firm Pleads Guilty

The owner of several California cheese companies pleaded guilty Wednesday to helping Suprema Specialties Inc., a defunct New Jersey cheesemaker, fabricate almost $350 million in sales before its collapse in 2002.

Jack Gaglio, 45, the founder of A&J; Cheese Co. in Upland, Calif., admitted in federal court in Trenton, N.J., that he conspired to help inflate Suprema’s sales. Gaglio admitted creating false documents that gave the appearance that Suprema shipped cheese to A&J; and other Gaglio companies.

Federal authorities say Suprema inflated sales by $700 million through a six-year false-billing scheme.

Gaglio is the fourth executive of a Suprema customer to plead guilty. The other three entered pleas in January 2004, when a former Suprema executive also admitted crimes.

Gaglio, a resident of Rancho Mirage, pleaded guilty to conspiracy and securities fraud charges and is helping prosecutors in a bid for leniency at sentencing. He faces up to 15 years in prison. U.S. District Judge Stanley Chesler freed him on a $1-million bond.

Gaglio also settled a lawsuit filed by the Securities and Exchange Commission without admitting or denying liabilities. Gaglio was co-owner of Noble JG Cheese of Etiwanda, California Goldfield Cheese Trading of Alta Loma and a part-owner of Wall Street Cheese of Corona.