Before Taylor Farms garnered the national spotlight in connection with a parasitic outbreak, the produce giant filed a lawsuit in federal court claiming a former executive stole over $30 million.
The Salinas-based company filed a federal lawsuit June 5 accusing Brian Thure and others of carrying out a yearslong scheme that diverted more than $32 million from the company through fake invoices, unauthorized payroll, personal expense reimbursements and other fraudulent transactions.
The complaint, filed in federal court in Tennessee, names Thure, the former Taylor Farms Tennessee President, his wife Julie Thure, James McPherson and MTS Building and Electrical as defendants.
Taylor Farms claims Thure exploited his authority over the company's Tennessee subsidiary to funnel company funds to himself, his family and others while concealing the activity from corporate oversight. The suit alleges he used the money to fund a lavish lifestyle.
Patch was unable to reach Thure for comment.
"[Brian Thure] exploited his position of trust and responsibility to divert corporate resources for personal gain in numerous ways," the lawsuit states.
According to the complaint, an IRS audit prompted the company to review records from its Tennessee subsidiary, leading to a broader internal investigation.
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That review uncovered concerns about a vendor known as MTS Building and Electrical, leading to a broader internal investigation. Taylor Farms stated its internal investigation found that more than $32 million had been stolen over several years.
The lawsuit says Thure approved payments to what it describes as a sham vendor, placed family members and personal employees on the company payroll, submitted fraudulent expense reimbursements and directed company vendors to perform work at his personal properties. It also claims company funds were used to purchase a UC Berkeley endowment, a $5.5 million home in Hawaii and help develop a 400-acre ranch in Humboldt County.
The complaint says Thure bypassed company controls and installed a separate, private internet connection in his office that was not managed by the company's IT department.
The complaint also says Thure later admitted to stealing company funds. According to the lawsuit, he admitted during a recorded telephone conversation with TFF corporate representatives that he stole funds and later left a voicemail for Taylor Farms CEO Bruce Taylor in which he confessed to and apologized for his fraudulent misconduct.
Taylor Farms is seeking compensatory and punitive damages, restitution and the recovery of assets it says were purchased with misappropriated company funds.
The lawsuit includes claims under the federal Computer Fraud and Abuse Act as well as fraud, conversion, civil conspiracy and breach of fiduciary duty.
The lawsuit comes after Taylor Farms was in the national spotlight for food safety investigations.
Federal officials investigated Cyclospora and salmonella outbreaks linked to some Taylor Farms products, prompting recalls and public health alerts.
The civil lawsuit appears separate from those foodborne illness investigations.
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