07May2010

Former Humboldt Creamery CEO May Get Five Years

Pleads guilty to making false statements about financial difficulties that bankrupted company.

Rich Ghilarducci struck a plea deal with prosecutors at San Francisco federal court, according to the Eureka, Calif. Times-Standard. He admitted lying about the creamery’s finances from 2005 to 2008, prior to its filing for bankruptcy. The felony charge could get him four to five years in prison when he is sentenced Oct. 6. He could also be ordered to pay back $7 million to investors.

Ghilarducci resigned in February 2009, leaving suppliers unpaid for their milk and local businesses in a financial lurch. Foster Farms Dairy has since purchased the creamery.