2 Louisiana men guilty of defrauding employer out of millions with chicken frame scheme
On Thursday, March 9, the United States Attorney Office announced that two Louisianans have pleaded guilty to a Bill of Information that charges them of conspiracy to commit fraud against the United States.
William Ross Hickman, 48, of Arcadia, Louisiana, and Brian K. Whiteman, 47, of Haughton, Louisiana, both pleaded guilty in United States District Judge Elizabeth E. Foote's courtroom. During the hearing, evidence was provided to the court on Hickman's and Whiteman's scheme to defraud the United States of chickens.
Hickman and Whiteman were both employed at Raeford Farms of Louisiana, LLC, where Hickman was a Sales Manager and Whiteman was as the Assistant Sales Manager of the Arcadia production plant.
Raeford Farms sells fresh and frozen chicken and chicken frames.
A chicken frame is the core of the chicken that remains after processing the breasts, thighs, wings, and legs.Hickman negotiated the sale of these chicken products seeking the highest possible return when selling them.
While employed at Raeford Farms, Hickman developed a scheme to fraudulently divert business from Raeford Farms by using Group 7792 as an intermediary to purchase chicken frames from Raeford Farms.
The U.S. Attorney's Office said that Hickman had a prearranged agreement with an unnamed individual and his corporation to sell the chicken frames to Heritage Food Sales (Heritage), which was another company controlled by Hickman. Heritage paid Group 7792 a guaranteed return for each transaction but never took possession of the chicken frames or added anything of value to the transaction.
Hickman would then sell the same chicken frames to a wholesaler in Tennessee for profit. Hickman and Whiteman used their positions to conceal the involvement of Heritage from Raeford Farms.
The U.S. Attorney's Office said Whiteman was responsible for tracking inventory and the details regarding all shipments, he would then provide this type of information to Hickman to further the fraud transaction.
Hickman would pay Whiteman a monthly commission. It was determined through the investigation that these two men defrauded Raeford Farms out of over $2 million.
Hickman and Whiteman face up to five years in prison and three years of supervised release with a fine of up to $250,000. Their sentencing will be on July 12, 2023.
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Makenzie Boucher is a reporter with the Shreveport Times. Contact her at mboucher@gannett.com.
This article originally appeared on Shreveport Times: Two Louisianans plead guilty to defrauding their employer
