CLAYTON, Mo. (CN) – Business Logistics and its president John Harold concealed a kickback scheme that defrauded Fleischmann’s Yeast of almost $1 million, Fleischmann’s claims in St. Louis County Circuit Court.
Harold and former Fleischmann employee Terry Strang agreed to coordinate Fleishmann’s transportation services for a flat fee of $75,000 a year, the complaint states. But they allegedly used their power over Fleischmann’s logistical services to get kickbacks from carriers they selected.
Fleischmann claims the carriers were forced to pay kickbacks to be awarded the Fleischmann business. The defendants allegedly submitted false invoices to get Fleischmann to pay the carriers for their services and for the kickbacks.
Fleischmann claims Strang confessed when confronted and said it was Harold’s idea. The yeast company said it lost more than $900,000 in the scheme.
Fleishmann seeks punitive damages. It is represented by Mark Mattingly.