The former co-owner of Valley Dairy, which does business as Matanuska Creamery, faces federal charges for using agricultural grant money for his own personal gain.
According to Assistant U.S. Attorney Retta Randall, 48-year-old Kyle Beus of Wasilla has been charged with three counts each of wire fraud and of making false statements to the United States Department of Agriculture.
At the time of the alleged fraud, between December 2007 and March of 2008, Beus ran the day-to-day operations of a facility that processed ice cream and cheese for Matanuska Creamery, as well as milk for another limited-liability corporation. Beus was in charge of grant fund disbursement for both companies.
The indictment alleges that Beus inflated invoices from companies that had done work on the dairy, and submitted the inflated number to the USDA for reimbursement. Afterward, Beus billed and received payment from the companies for "supplies, materials and management," which the government says he was not entitled to.
Beus had a hand in numerous dairy-related companies. In September of 2006, he founded Klondike Creamery and Candy, LLC, which made ice cream and cheese and received federal grants in 2007. Beus and two others incorporated into Valley Dairy in January of 2008. In 2008, he also formed a company that produced recyclable milk jugs, which was the exclusive supplier for Valley Dairy.
The indictment says the fraudulent funds amount to at least $121,000. The grants were part of a $650,000 pot of money set aside by the USDA to expand the dairy industry in Alaska.
If convicted, Beus could face up to 30 years in prison, a $1 million fine, or both.
Contact Kortnie Horazdovsky
