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.
“None of the stores in this area actually received the product,” Washignton County Police Dectective Brady Stallings said. “There were invoices fraudulently issued to them and employee signatures that were forged. So those invoices were billed to the stores and they contacted the manufacturer and disputed them, obviously.”
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.
“We’ve heard that he was selling some of the product out of the back of a truck at some flea markets around,” Stallings said.
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.
“There is probably some story to why this all happened the way that it did because this isn’t something that just happens on a day to day basis,” Stallings added.
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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