United States Attorney's Office District of Connecticut
Press Release

NEW FAIRFIELD MAN CHARGED IN 13-COUNT INDICTMENT
Alleged to have defrauded Land O'Lakes

Kevin J. O'Connor, United States Attorney for the District of Connecticut, announced that a federal grand jury sitting in Hartford today returned an Indictment charging JOSEF J. KUSTERER, age 48, of New Fairfield, Connecticut, with 13 counts of wire fraud.

The Indictment alleges that KUSTERER, formerly the Northeast Regional Sales Manager for Land O'Lakes, perpetrated a fraudulent scheme against Land O'Lakes that resulted in the company sustaining a loss of approximately $1.85 million. According to the Indictment, KUSTERER, together with Herbert H. Auleta, Jr., the president of Habco Sales Inc., a cheese distributor located in Amityville, New York, created fictitious "bill back" invoices for advertising and promotional expenses that Habco Sales ostensibly incurred in promoting Land O'Lakes products. The Indictment further alleges that KUSTERER received approximately $506,000 in cash for approving the fictitious invoices, and forwarding them to Land O'Lakes for payment.

If convicted, KUSTERER faces a possible term of imprisonment of up to five years for each of the 13 counts and a fine of up to $3.7 million.

On November 21, 2003, Auleta pleaded guilty to a one-count Information charging him with conspiring to defraud Land O'Lakes. A sentencing date has not yet been scheduled.

U.S. Attorney O'Connor stressed that an indictment is only a charge and is not evidence of guilt. The defendant is entitled to a fair trial at which it is the Government's burden to prove guilt beyond a reasonable doubt.

This case is being investigated by the Federal Bureau of Investigation. The case is being prosecuted by Supervisory Assistant United States Attorney Ronald S. Apter.

CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
thomas.carson@usdoj.gov