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Eleven men — mostly from International Outsourcing Services based in Bloomington, Ind. — were charged in March 2007 with 25 counts of wire fraud. Seven also have been charged with obstruction of justice.
Early filings named more than 100 victims, including Ben & Jerry’s Homemade Inc., Colgate-Palmolive Co., and Gerber Products Co.
But there could be 700 more victims, including ExxonMobil Oil, the Kansas City Star, and the National Pork Board, U.S. Attorney Steven Biskupic said in a new filing in the Eastern District of Wisconsin late last month. The filing said prosecutors would follow up with the companies named.
The indictment alleges the defendants submitted fraudulent coupons to manufacturers for payment of up to $250 million between 1997 and 2006.
Charges against International Outsourcing Services were dropped after the company agreed to cooperate with the investigation. Nine current or former IOS officers and two executives of New Jersey-based Riya Coupon Services have been named in the case.
IOS acts as a clearinghouse for coupons, receiving them from retailers who seek payment from manufacturers. IOS processes the coupons, gets payments from manufacturers and gives them back to retailers, subtracting fees for its services.
In October, more than 20 consumer products companies, including PepsiCo Inc., General Mills, and Johnson & Johnson, sued IOS and several of its former officers, saying they lost at least $150 million in the fraud scheme.
The scam affected manufacturers nationwide, prosecutors have said, but the case was filed in Milwaukee because the complaint originated there. Wisconsin companies including BelGioso Cheese Inc., Patrick Cudahy, and Palermo Villa Inc. have been named.
Well-known companies such as Los Angeles-based Fiji Water, New York-based Warner Home Video, and the Iowa-based National Pork Board also were named.
Fiji spokesman Rob Six said he had to look into the matter before he could comment. Cindy Cunningham, spokeswoman for the National Pork Board, also said she did not have enough information to comment on the matter.
Francis Wall, a spokesman for BelGioso Cheese Inc., based in Denmark, Wis., said he had no comment. Other companies did not immediately return phone messages seeking comment.
