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Shaver Foods Accused of Diluting Spices Under Prison Contracts

Aug. 25, 2020, 5:58 PM

An Arkansas food company and a Pennsylvania subcontractor selected to provide spices to federal prisons are accused of defrauding the Federal Bureau of Prisons by overcharging for diluted products, federal prosecutors said in a complaint filed Tuesday.

Shaver Foods LLC’s contracts required providing spices with no additives or fillers, which cost less than pure spices, but Shaver recklessly failed to tell subcontractor Zilka & Co. LLC about this requirement, according to this False Claims Act complaint filed in the U.S. District Court for the Eastern District of Pennsylvania.

Shaver Foods provided garlic powder, cinnamon, cocoa powder, and other spices to ...