Fed judge sets Le-Nature’s restitution at $661M

Posted: October 24, 2011

PITTSBURGH - A federal judge in Pittsburgh says former Le-Nature's CEO Gregory Podlucky is responsible for $661 million in restitution to investors, vendors and lenders who lost money in a massive fraud.

The Pittsburgh Tribune-Review first reported Senior US District Judge Alan Bloch's ruling issued Monday.

Bloch left open the matter of restitution in sentencing the 51-year-old Podlucky on Thursday to masterminding a scheme to inflate the company's revenues to attract additional financing.

Podlucky claimed a consortium of lenders led by Wachovia Bank weren't victims of the $684 million scheme, claiming they withdrew $258 million in bankruptcy claims for a loan not repaid after Le-Nature's 2006 bankruptcy. But the judge agreed with prosecutors who argued Wachovia, alone, withdrew a $23 million claim.

Podlucky and five other executives are expected to repay a fraction of the amount owed.

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