Allen Family Foods defrauded out of $1.3 million, feds say
Allen's insurance carrier paid the company back for the losses, said U.S. Assistant Attorney Ilana Eisenstein, meaning that the fraud was not a direct contributor to Allen's failure. The company had filed for bankruptcy on June 9, blaming high prices for corn, operational mistakes and Wilmington Trust's decision to cut its credit line. It was acquired by Harim Group, Korea's largest poultry producer, which said that it would continue running the company's existing plants and buy from its contract growers.
Sources: The News Journal, USA Today