WASHINGTON, Pa. — A man is facing multiple felony charges in Washington County following an extensive investigation into an alleged fraud scheme involving Stewart Snacks, LLC, an independent distributor of Little Debbie snack products.
The investigation began after Stewart Snacks reported suspected fraudulent business records and missing products to the Jefferson County Sheriff’s Office in Ohio. The case was later referred to the City of Washington Police Department after offenses were determined to have occurred within the City of Washington and South Strabane Township.
Investigators allege that while James Powell, of West Virginia, was employed as a distributor, he created fraudulent delivery invoices. These invoices indicated that Little Debbie snack products had been delivered to several retail stores, but the deliveries never actually took place.
Employee signatures were also allegedly forged on these delivery invoices to falsely verify the receipt of merchandise. This allowed the invoices to be processed through the manufacturer’s central billing system.
The investigation identified fraudulent invoices involving Shop N’ Save, Giant Eagle and Walmart locations within Washington County.
Investigators allege the scheme resulted in Stewart Snacks, LLC reimbursing affected retailers and the manufacturer for losses. During this time, Powell reportedly received commission payments for deliveries that never happened.
The total restitution sought in this case is $17,167.97.
Following consultation with the Washington County District Attorney’s Office, the City of Washington Police Department filed numerous charges against Powell. These include forgery, theft by deception and two counts of theft by unlawful taking. Additional charges include deceptive or fraudulent business practices, tampering with records or identification, and deceptive or fraudulent business practices.
Powell has since been taken into custody in West Virginia on an arrest warrant issued in connection with this investigation. He is currently undergoing the extradition process to be returned to Washington County.
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