Before its recent distribution of produce contaminated with cyclospora and salmonella, Taylor Farms filed a lawsuit against former executive Brian Thure, alleging more than $32 million was embezzled for unauthorized purchases including a $1 million endowment for the Cal football team.
According to the lawsuit filed in June, Thure and his wife, Julie Thure, embezzled $32 million over five years by moving money through the alleged “sham entity” MTS Building and Electrical. Taylor Farms accused James McPherson, who is also named as a defendant alongside the couple and MTS, of operating the entity to aid Thure and his wife in receiving and dispersing funds.
Thure served as president of Taylor Farms’ Tennessee subsidiary from 2012 until March of this year after playing in the NFL for the now-Washington Commanders after his time with Cal football.
Thure established the “Brian and Julie Thure Right Tackle Endowment” for Cal football, which the lawsuit alleges was funded by $1 million in stolen company funds, along with other lavish purchases. Taylor Farms also claims that $400,000 in remaining liability related to this gift remains on the Thures’ personal balance sheet.
The lawsuit additionally alleges that Thure voluntarily sent this balance sheet along with an account statement of personal assets funded through the embezzlement operation after admitting to theft in a recorded phone call with company representatives.
Other purchases allegedly funded by the embezzlement scheme include a $5.5 million home in Hawaii and millions spent to develop a 400-acre ranch in Humboldt County.
The lawsuit claims that a UC Berkeley press release about the endowment was taken down. Campus spokespeople declined to comment on the endowment, citing their lack of involvement with the litigation.
For Taylor Farms, the lawsuit was quickly followed by a busy season of unrelated disease outbreaks. Cyclospora cases emerged later in June, which the Centers for Disease Control and Prevention linked to the company’s iceberg lettuce products. Taylor Farms recalled its lettuce from retail stores and restaurants in July, but is now facing a salmonella outbreak in products using jalapeños sourced from Coast Citrus Distributors.
On Aug. 9, Taylor Farms voluntarily recalled its prepared food products using jalapeños following Coast Citrus Distributors’ recall.
According to a court opinion released last week, the Thures allege that they are currently the subjects of a parallel federal criminal investigation for the same conduct after being referred to the U.S. Attorney’s Office by Taylor Farms’ counsel. The defendants’ requested a 90-day stay, citing Fifth Amendment interests and the simultaneous litigation, though a district judge denied this request.
Opposing the motion for stay, Taylor Farms argues the Thures have continued to funnel “hundreds of thousands of dollars into undisclosed accounts” since the fraud was discovered, “running out the clock until any meaningful recovery becomes impossible.”
Neither Thure nor Taylor Fresh Foods replied to repeated requests for comment as of press time.