A former vice president of Rite Aid Corp. and his business associate have signed tentative agreements saying they'll plead guilty to allegations they duped the company out of $14.6 million by profiting from deceptive sales of its surplus inventory.
Former Rite Aid Vice President Timothy Foster and New Jersey businessman Jay Findling allegedly made Rite Aid believe its surplus inventory had been sold to Findling's company for one price, when it had actually been sold to third parties for more money between 2001 and 2010. Findling would allegedly handle the money, sending Rite Aid doctored invoices and then kicking back part of the profits to Foster.
Both men have signed tentative plea agreements. Foster, who worked for Rite Aid in Oregon, agreed to plead guilty to the felony count of making false statements and allegedly lying to the FBI about his involvement. Foster later admitted to conspiring to defraud Rite Aid, and voluntarily surrendered $2.9 million in cash kickbacks he had received, according to the Justice Department.
Findling has agreed to plead guilty to felony conspiracy to commit wire fraud. His agreement requires him to make a $11.6 million lump sum payment to the government.
Attempts to reach Foster's and Findling's attorneys for comment Thursday were not immediately successful. Rite Aid is based in Camp Hill, Penn.
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