Heads of Evansville company indicted for fraud, arrested by FBI
Former CEO and COO charged with conspiracy, fraud, and money laundering
By Jill Lyman | February 12, 2019 at 12:44 PM CST - Updated February 12 at 12:50 PM
EVANSVILLE, IN (WFIE) - United States Attorney Josh J. Minkler announced Tuesday that a federal grand jury has indicted Kevin Kuhnash, 57, and Jason Jimerson, 44, formerly the Chief Executive Officer and Chief Operating Officer of Lucent Polymers, Inc., an Evansville-based plastics manufacturer.
The two men have been arrested by the FBI.
The indictment claims they committed fraud when they orchestrated the sale of Lucent to another company but concealed critical defects in Lucent’s business, including fraud that Lucent was committing on its customers.
The U.S. Securities and Exchange Commission announced that it also charged Kuhnash and Jimerson with fraud.
“Corporate officials who put deviousness over good faith degrade the integrity of our markets and impugn the reputation of American industry,” said Minkler. “This office will continue to prioritize the investigation and prosecution of corrupt corporate executives who enrich themselves through fraud and deception.”
Lucent’s customers included manufacturers and suppliers of automobiles, automobile air bags, electrical boxes, ceiling fans, kitchen appliances, and heating and air conditioning units. Their specifications often included the plastic’s flame resistance, color, strength and durability, and certification by Underwriter’s Laboratories (“UL”).
According to the indictment, Lucent’s internal testing showed that its low-cost products often did not meet its customers’ specifications or UL certification standards.
Gabriel Grchan, Special Agent in Charge of IRS Criminal Investigation said, “Business executives that cheat, lie, and steal stain the fabric of the American economy. These Lucent executives filled their pockets through fraud and numerous acts of deceit. As in this case and countless others our agents will find corruption and bring it to justice.”
Full article:
http://www.14news.com/2019/02/12/heads-evansville-company-indicted-fraud-arrested-by-fbi/