Warrants: LeNature's CEO had 'piles of gold' in his home
In 2007, as LeNature's Inc. was disintegrating and federal agents were on its trail, Gregory and Karla Podlucky of Ligonier Township and their son Jesse were busy turning gold and platinum into untraceable cash, U.S. Postal Service inspectors charged.
A federal judge yesterday unsealed warrants for searches at the Latrobe bottling plant and the Podluckys' home that alleged they were mailing plastic bags marked "18 kt gold" and "platinum" to a New York-based precious-metals dealer to "turn them into currency."
The warrants were unsealed as part of a defense request for evidence that the government plans to use against ex-LeNature's Chief Executive Officer Gregory Podlucky and former company officials when the case goes to trial in July.
Podlucky's home and business were searched in 2007 after creditors forced LeNature's into bankruptcy the year before and investigators uncovered a huge fraud scheme that bilked banks and lending institutions out of $801 million, federal prosecutors allege.
The warrants revealed that Podlucky had a safe in his home filled with "piles of gold."
Jeff Teacher, Podlucky's former bodyguard, told inspectors that he saw the gold in a safe when it was opened in Podlucky's garage.
The Podluckys allegedly mailed the metal-laden bags from the post office in Laughlintown, according to the warrant.
Teacher admitted he helped Podlucky destroy financial records by shredding and burning them and crushing them in a trash compactor. He has not been charged in the scheme.
"In my 22 years as a Postal Inspector, I have learned that it is common for persons operating a scheme to defraud to attempt to conceal valuable items acquired as a result of the scheme and often to attempt to dispose of them in ways they believe reduce the likelihood of discovery," wrote Inspector Gregg Fiorina.
Podlucky; his brother Jonathan Podlucky, the former chief operating officer of LeNature's; Robert Lynn, former vice president; consultant Andrew Murin; and Donald Pollinger, a business associate, were indicted in 2009 for mail, bank and wire fraud.
Gregory Podlucky also was indicted for tax evasion in 2009. Earlier this year, Gregory, Karla and Jesse Podlucky were indicted for money laundering.
Authorities wanted to search Podlucky's Cobblestone Lane home for the precious metals and gems that he allegedly purchased with money siphoned from the company. Prosecutors charge that Podlucky spent $20 million on jewel-encrusted watches, bracelets, earrings, rings and necklaces.
Some of the jewelry pieces were custom-made for Karla Podlucky and cost $100,000 each, prosecutors said.
Post office employees told inspectors that the Podluckys mailed at least eight parcels to Kitco Inc. in Champlain, N.Y. Inspectors got search warrants to examine the contents of the boxes.
Another former LeNature's employee, Ken Staiger, a graphic artist, created a forgery of a Merrill Lynch account document for Podlucky, authorities said. Staiger said Podlucky and Murin instructed him to create bogus checks payable to LeNature's with the amount space left blank.
Staiger said one check from a customer for $387.28 was changed to $99,077 and deposited with Merrill Lynch. According to the search warrant, Podlucky later withdrew $4.5 million from the account to buy precious metals and jewels.
The metals and gems were stored in a secret room in the vestibule of the company's Lloyd Avenue entrance, according to a warrant.
A 3-foot-tall steel door that led to the secret room was hidden beneath large metal shelves used to store beverages, and a loaded pallet blocked the entrance, inspectors said.
The room was 8 to 10 feet wide and 15 to 20 feet deep, according to postal inspectors. Inside were two floor safes and 11 fireproof cabinets filled with jewelry and gems.
Fiorina said Podlucky kept such tight control of the daily management of LeNature's that he "appeared to recognize no limits to his control."
