CEDAR RAPIDS, IA – A nationwide outbreak of salmonellosis that led to the August 2010 recall of millions of eggs produced by Quality Egg LLC, has resulted in a multi-million-dollar fine for the company and its owners, Austin ‘Jack’ DeCoster and his son Peter DeCoster. The Northern District of Iowa collected $16,332,696 in the fiscal year ending September 30, 2015, more than twice the office’s direct budget.
The top criminal collection for the Northern District of Iowa involves Austin ‘Jack’ DeCoster, his son Peter DeCoster, and their company, Quality Egg LLC. The criminal case involved bribery of a public official, introducing a misbranded food into interstate commerce with intent to defraud, and introducing adulterated food into interstate commerce. Adulterated eggs produced and distributed by Quality Egg were linked to approximately 1,939 reported consumer illnesses in multiple states.
Austin ‘Jack’ DeCoster, his son Peter DeCoster, and Quality Egg LLC were sentenced to pay a fine of $6,790,000. Both DeCosters were also sentenced to serve prison time and fined $100,000 each.
The top civil collection for the Cedar Rapids Office resulted from a settlement with ResCare Iowa Inc., which agreed to pay $5,630,000 to the United States and the State of Iowa to resolve allegations that it violated the False Claims Act by submitting false home healthcare billings to the Medicare and Medicaid programs.
United States Attorney for the Northern District of Iowa, Kevin W. Techau, reinforced the importance of these collections, indicating “The recovery of ill begotten funds for the federal treasury and for victims of crimes is a top priority. I am very proud of the office’s efforts to hold accountable those who wrongfully profit at the expense of the United States.”
Nationally, the U.S. government collected $23.1 billion in civil and criminal actions in fiscal year (FY) 2015. The amount collected represents more than seven and a half times the approximately $2.93 billion of the government’s combined appropriations for the 94 United States Attorneys’ Offices and the main litigating divisions in that same period.
Related Federal Cases
- William Jack Berg, Fraud Scheme, Iowa 2024 · Iowa
- Howard Jack Aleff, Conspiracy to Defraud the United States, Iowa 2011 · Iowa
- Jeffrey J. Kinseth, Wire Fraud, Iowa 2009 · Iowa
- Raymond A. Schaefer, Making False Statements to a Financial Institution, Iowa 2013 · Iowa
- Anthony Bartleson, Embezzlement, Iowa 2023 · Iowa
Key Facts
- State: Iowa
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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