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Wednesday, July 22, 2009

Ex-Pepsi Exec Admits Stealing $1.8M From Company

By Joanna Ossinger

FOXBusiness

A former PepsiCo (PEP) executive admitted to embezzling more than $1.8 million from the company.

The U.S. Attorney for the Southern District of New York announced on Wednesday that Edward Backus pleaded guilty to three felony counts -- one count of conspiracy, one count of travel-agency mail fraud and one count of livery-company mail fraud.

The U.S. Attorney’s press release said that Backus and two co-conspirators set up fake businesses in Pittsburgh that sent invoices for fake tickets and travel to Backus. He then submitted the invoices, which Pepsi paid to the company. Backus received a share of the payments, the press release said.

Also, according to the press release, Backus had a Kansas travel agency and a livery-services company send phony invoices to Pepsi.

All told, the amount embezzled was more than $1.8 million, the U.S. Attorney’s office said.

Backus could face up to 20 years in prison for each count. He also faces a fine of up to $250,000 or twice the gross gain or loss resulting from the crimes on each count, an order of restitution in the amount of $2,368,441 and forfeiture of any ill-gotten gains.

Backus is scheduled to be sentenced on Nov. 12.

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