CITY OF COMMERCE : Food Firm Officials Indicted for Overbilling Schools

Three former officers of a Mexican food company based in City of Commerce have been indicted for defrauding the National School Lunch Program by overbilling school districts--including Los Angeles Unified--and using inferior ingredients.

In a 25-count indictment, the U.S. attorney’s office charged the former president, vice president and quality control manager of Kold Kist Brands with violating its contracts with districts between 1986 and 1992.

Under those contracts, Kold Kist was required to meet nutritional standards, such as ensuring that ground beef had a fat content of less than 30%. Instead, the indictments allege, the company used meat substitutes and meat that was up to 50% fat.

In addition, the company allegedly accepted surplus commodities donated by the federal government to schools, such as cheese and beans, and used them in its line of commercially sold products, rather than in meals prepared for the schools, as regulations require.

Finally, former company President Roger Peters is accused of falsifying food delivery records to draw on a $1-million line of credit extended by the National Bank of Long Beach.

If convicted, Peters faces a maximum sentence of 325 years in prison and a $12.25-million fine. Dahl Casey, the vice president of manufacturing and John Jonesat, quality control manager, face maximum sentences of 85 years and $4.25-million fines.