PITTSBURGH -- The former chief executive and four other employees of defunct soft-drink maker Le-Nature's Inc. have been indicted by a federal grand jury in Pittsburgh for an alleged $806 million fraud.

U.S. Attorney Mary Beth Buchanan says Gregory Podlucky, of Ligonier, conspired to cook the Latrobe company's books to get loans and equipment leases.

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The indictments were returned under seal Sept. 17 and revealed Monday when Podlucky and some of his co-defendants were arrested.

Buchanan says the alleged fraud is believed to be the largest ever in the 25-county Western District of Pennsylvania.

Court Documents:
• Read The Podlucky Indictment
• Read The Indictment Against Others

The indictments accuse Podlucky of 29 counts of mail fraud, wire fraud, conspiracy, money laundering and income tax evasion.

Podlucky's brother, Jonathan, who was LeNature's chief operating officer, was also indicted, along with Andrew J. Murin, Robert B. Lynn and Donald Pollinger.

"The actions by Mr. Podlucky and his associates resembled a corporate ponzi scheme by falsely exaggerating the level of business activity. Their greedy ambitions not only violated federal law, but negatively impacted their employees, investors, vendors and financial institutions," said a statement from Timothy Marsh, IRS Special Agent in Charge in Pittsburgh.

The indictment accuses the defendants of creating fraudulent company financial statements that inflated Le-Nature's assets by substantial amounts. It alleges that funds were transferred among accounts to document fictitious transactions that gave the appearance of sales revenues for Le-Nature's.

Agents from the IRS and the Postal Inspection Service arrested both Podluckys, Murin and Lynn on Monday morning. All four were later released on bond.

Pollinger was not arrested and will self-report for his arraignment at a later date, the IRS said.