1st BATCH OF FILES AVAILABLE NOW!

The plot to prosecute a sprawling alleged cover-up of extensive commercial bribery thickened this wk as 6 more industry employees were indicted by a fed grand jury on felony conspiracy and obstruction charges. The indictment signed in Northern California on Tuesday details how distrib employees coordinated bribes for retail buyers, their own sales reps and others and then falsified documents to cover up those payments. Whether distributed thru $1,000 gift cards, luxury watches, purses and suits or high-end travel, golf outings, NFL games or spa packages, the bribes were used to secure placement of certain supplier brands at large grocery chains, prosecutors claim. Like charging documents filed against 5 separate defendants last yr, the indictment implies violations of fed trade practice laws, but these individuals are charged with covering up the evidence of that activity to hide it from TTB. Indeed, the agency began investigating the use of gift cards as pay-to-play back in 2018, the filing explains. Eventually, the IRS got involved and is now the lead prosecuting agency in the case. All 5 of the prior defendants are named by the new indictment and connected to new defendants, which include 5 distributor employees and another supplier rep. And while the new charges continue to redact all company names, various details confirm once again that the distributor in question is Southern Glazer's.The co did not provide comment to the SF Chronicle, which reported on the indictment last night. It told the Drinks Business that "we understand that five former employees of Southern Glazer's have been charged. Southern Glazer's is committed to full compliance with all applicable laws and industry regulations, and we hold ourselves and our employees to the highest standards of ethics and integrity. We have cooperated with relevant authorities and will continue to do so." Recall, the TTB and IRS raided the co's Northern California offices in fall of 2022.5 New Defendants in CA Chain Dept at SGWS, Plus Napa Winery Employee; 11 Now, How Many More? The highest level exec charged this wk is Adrian Ruiz, a former sr VP of chains in CA for SGWS. Prior charging documents connect him to Patrick Briones, the wine buyer for Albertsons charged last yr, as well as Bryan Barnes, a former sales leader for Deutsch Family, and John Herzog, a contractor who worked for a separate, still unnamed supplier. The indictment this wk explains that Ruiz oversaw 5 VPs and other sales directors. Two of those VPs, Michael Dehdashtian and Stephen Magliocco were also charged this wk, the former tied to Briones and the latter more closely linked to 4 unnamed suppliers who funded bribes. Two sales directors working under Ruiz were charged as well: Ryan Dow, linked to Briones, and Loratina "Tina" Muscara, linked to the buyer at a sibling retailer also owned by Albertsons, likely Vons.Michael Sean Salene, an employee of a Napa winery identified by the Chronicle as Roots Run Deep, was charged as well for, among other things, lying to fed investigators. Again, documents also name earlier defendants, including Matthew Adler, a colleague of Barnes, and Jessica Goebel, the operator of an outside vendor that helped supply the bribes. That brings the total to 11 defendants fed prosecutors charged with being part of the conspiracy. But there could be many more. In addition to the unnamed companies like "Distributor 1," "Retailer 1," 3 more outside vendors and no less than 17 numbered suppliers, plus individuals like the 2nd retail buyer, an additional distrib chain veep and another supplier employee who are also referenced. Note that in conspiracy cases like this, the identities of potential defendants remain redacted until formal charges are brought.Invoice Numbers, Forged Folios and a Spouse-Run Vendor To back up their conspiracy charges, prosecutors allege 18 separate instances of bribes paid or promised between March 2019 and March 2024. They total over $170,000 in goods, services, gift cards and cash, including a $36K golf trip to Pebble Beach enjoyed by Briones, Magliocco, Dow, another distrib employee and the employees of an unnamed supplier, which "received new items and prominent placements" at Albertsons. Docs claim that Muscara got monogrammed purses for herself and the same retailer buyer she treated to dinner in Napa for the birthday of the buyer's relative. Briones allegedly received Vegas trips and NFL tickets, including to a "conference championship game." At one point in 2024, Magliocco apparently told a subordinate to take out about $2,000 cash "from their personal account" for Briones.A number of individual payments come with invoice numbers from Goebel's vendor, J. Go Events, usually citing "programming," "planning" or simply meetings and seminars with specific retailers, according to docs. Those invoices were mostly billed back to specific suppliers, which prosecutors also cite. Magliocco, Ruiz and Muscara are not just charged with conspiracy but for actually falsifying documents themselves, often by forging hotel and resort folios to look like "legitimate business expenses" for supplier bill-backs. A 4th vendor used to submit false invoices for bribes was run by 3 spouses of distrib employees, the indictment points out. Vendors typically got 10%, per prosecutors.What Next? How Far? None of the individuals being charged this wk have been arrested, documents show, and all are set to be arraigned in Oakland at the end of the month. The charges for conspiracy come with max 5 yr prison terms plus fines of up to $250K, while falsifying documents carries a heftier 20 yr max term. Recall, all 5 of the prior defendants appear to be cooperating with prosecutors, pleading guilty or deferring prosecution. Will these defendants join them? And who else will be implicated? Documents repeatedly refer to other individuals at multiple companies, including higher-ups, tho not always specifically. And tho they hint at broader behavior, it's not explicitly explained how extensive or embedded this activity might have been. Finally, will feds attempt to charge any of the companies and license holders with trade practice violations in addition to trying to hold individuals accountable for covering up that alleged crime?

5 Distrib Employees and 1 More Supplier Rep Indicted on Felony Conspiracy Charges in Northern CA

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