The U.S. Attorney’s office in Anchorage on Wednesday announced an indictment by a federal grand jury for wire fraud and false statements to the U.S. Department of Agriculture.
The indictment is in connection with the construction and management of Valley Dairy, doing business as, Matanuska Creamery in Alaska. The six-count indictment named Kyle E. Beus, 48, as the sole defendant.
Bues is a co-owner of the dairy. U.S. Attorney Kevin Feldis says the allegations in the indictment charge that as early as 2007, Beus was involved in a scheme to defraud the USDA through federal grants.
“Its alleged in the indictment that he submitted false invoices to obtain payment for things that he didn’t really purchase or spend the money on. In total it’s alleged that over $120,000 was fraudulently obtained.” Feldis said.
A call to the owners of Matunuska Creamery was not returned before deadline.
The entire amount of the USDA grant was approximately $643,000.
The Matanuska Creamery is located off the Palmer-Wasilla Highway. It sells wholesale and retail dairy products through a storefront at the creamery, which has been open for about four years.
Feldis says the USDA’s office of Inspector General worked closely with the FBI to put the case together.
The maximum penalties are up to 30 years in prison and $1 million dollars in fines.
A trial will be set for U.S. Federal court in Anchorage within 70 days.
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