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Bribing the purchasing agent: Tomato Prices

Charlie Munger said one way to make more money was to charge more for your products and use some of the increased profits to bribe the purchasing agent. It seems, at least one person took him seriously.

Alan Scott Huey, who served as a senior vice president at SK Foods between 2004 and 2008, is accused of taking part in a scheme to bribe purchasing agents from major food companies to buy tomato products from the Monterey company rather than its competitors.

 

The products were then allegedly sold at inflated prices. Some of the food companies included Kraft Foods Inc., Frito-Lay Inc. and B&G Foods Inc.

Source: http://finance.yahoo.com/news/Exec-to-plead-guilty-in-apf-1777313164.html