A former executive for Rite Aid Corp. and a New Jersey businessman have been charged in connection with a $14.6 million, surplus inventory-sales kickback scheme, according to the U.S. Attorney's Office for the Middle District of Pennsylvania.
Timothy P. Foster, 65, of Portland, Ore., a former vice president of quality assurance at Rite Aid, is charged with making false statements to authorities as part of an alleged effort to defraud the Camp Hill-based pharmacy chain from 2001 to 2019. Jay Findling, 54, of Manalapan, N.J., is charged with conspiracy to commit wire fraud.
Foster led Rite Aid to believe its surplus inventory had been sold to Findling's company, J. Finn Industries L.L.C., for $72.8 million when, in fact, it had been sold to third parties for $87.4 million, according to a criminal information filed in U.S. District Court in Harrisburg. Findling would then kick back a portion of his $14.6 million in profits to Foster, the information said.
Both criminal counts are punishable by up to five years imprisonment and a $250,000 fine.