Ex-Rite Aid executive, New Jersey businessman charged in $14.6M surplus sales scheme

Associated Press

A former Rite Aid quality assurance executive in Oregon and a New Jersey businessman have agreed to plead guilty to charges in connection with a nine-year, $14.6 million surplus inventory kickback scheme.

Federal prosecutors Thursday charged Timothy Foster and businessman Jay Findling with conspiracy to commit wire fraud and 65-year-old Foster with making false statements.

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They face up to 5 years in prison and a $250,000 fine on each count and are required to pay restitution to Rite Aid. The Camp Hill, Pennsylvania company says it's pleased with the outcome.

The 54-year-old Findling must forfeiture $11.6 million to the government.

Prosecutors say Foster used Findling's company as a front to sell surplus inventory to third parties at higher prices and that they pocketed the difference.

Their lawyers didn't immediately comment.