A third executive of Adams Produce Co. has agreed to plead guilty to a federal charge in relation to a scheme to defraud the federal government.
David Kirkland, who was purchasing director for the now bankrupt Birmingham, Ala., produce distributor, has agreed to plead guilty to conspiracy.
“This defendant … joined other employees in a fraud meant to cover the company’s deteriorating financial condition,” U.S. Attorney Joyce Vance said in a Feb. 6 news release. “The investigation of wrongdoing by former Adams officers and employees continues, and any who have committed crimes will be held accountable.”
Kirkland supervised Adams Produce purchasing program specialist Christopher Pfahl, who pleaded guilty in January to conspiracy to defraud the government of $481,000. The conspiracy involved a scheme to create false invoices and purchase orders for produce the U.S. government bought for the military and public schools.
Scott Grinstead, former chief executive officer for Adams, has agreed to plead guilty to fraud against the company, failure to report a felony against the government and failure to file federal income tax returns.
Adams Produce was founded in 1903 by Edwin Calvin Adams. The Adams family sold the company to executives and a private equity firm in 2010.