Ex-Humboldt Creamery CEO Hit With 2.5 Years For Fraud

Law360, New York (May 20, 2011, 12:21 PM EDT) -- A federal judge sentenced the former CEO of California's Humboldt Creamery to 2 1/2 years in prison Thursday and ordered him to pay $7 million for falsifying financial records for a loan from agricultural cooperative CoBank ACB and helping bankrupt the dairy cooperative.

Former Humboldt Creamery CEO Richard Ghilarducci pled guilty before U.S. District Judge Charles R. Breyer to one felony count of providing false statements to an agricultural bank on May 5, 2010.

Ghilarducci falsified the dairy cooperative's financial statements from 2005 through 2008, which...
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