PORTLAND, Ore.—Gregory McCarthy, 68, the owner of Ground Zero Seeds, a grass seed production and wholesale company based in Yamhill, Oregon, has been charged with conspiracy to commit wire fraud.
According to an indictment returned on March 2, 2021, McCarthy’s scheme involved paying kickbacks to Richard Dunham, a former Jacklin employee, for grass seed purchases by the J.R. Simplot Company and its former subsidiary, the Jacklin Seed Company.
The indictment states that between April 2015 and September 2019, McCarthy caused Ground Zero to pay Dunham more than $191,789 in kickbacks, which were built into the prices reflected on Ground Zero’s invoices to Jacklin.
McCarthy and Dunham regularly corresponded by email, referring to the kickbacks as ‘shoes’ or contributions to Dunham’s ‘shoe fund.’ To conceal their scheme, Dunham maintained an LLC through which he claimed to provide consulting and brokering services.
McCarthy will be arraigned on March 15, 2022, by a U.S. Magistrate Judge.
If convicted, McCarthy faces a maximum sentence of 20 years in federal prison, a $380,000 fine, and three years’ supervised release.
U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by IRS-Criminal Investigation and the U.S. Department of Agriculture Office of Inspector General. It was prosecuted by Ryan W. Bounds, Assistant U.S. Attorney for the District of Oregon.
An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Gregory McCarthy, Defendant/Respondent
Criminal Charges: Conspiracy to Commit Wire Fraud
City and State: Portland, Oregon
Exact Date: March 2, 2021
Sentence or Outcome: Currently pending arraignment
Dollar Amounts: $191,789 (kickbacks paid to Dunham)
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Key Facts
- State: Oregon
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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