Milling & Baking News - June 30, 2009 - 10

Business

Horst Schroeder, Warren
Schmidgall settle with S.E.C.
KANSAS CITY - Horst W. Schroeder and Warren B. Schmidgall, former
executives for American Italian Pasta
Co., on June 22 settled fraud charges
with the Securities and Exchange
Commission (S.E.C.) to resolve misconduct related to historical accounting and financial reporting.
In its complaint, the S.E.C. accused
Mr. Schroeder, former chairman of
AIPC, of signing off on documents at
the end of AIPC's 2003 fiscal year that

showed $3.4 million in revenue that
was neither valid nor collectible. As
part of his agreement with the S.E.C.,
Mr. Schroeder agreed to pay $50,000 in
fines without admitting to or denying
the allegations.
For his part, Mr. Schmidgall, former
chief financial officer of AIPC, was
accused of engaging in an accounting scheme that led to overstating of
the company's pre-tax earnings by
$59 million between 2002 and 2004.

Tortilla, Mexican food company
doubles production capacity
produce fresh, refrigerated and frozen foods. Circle Foods already was
one of the largest tortilla suppliers
in the San Diego area before construction of the new building, which
doubled the company's production
capacity. The new building also has
27,000 square feet
of office space to
house the company's headquarters.
According
to
Circle Foods, the
new building features a range of environmental conservation features,
including energy
efficient refrigeration and electrical
utilities as well as
the plant's own
water
treatment
facilities. The company said the plant
is "fully compliant with all F.D.A.
Dedication ceremonies were held June 22 marking the comple- and U.S.D.A. food
tion of a new manufacturing, warehouse and office complex m a n u f a c t u r i n g
safety standards."
for Circle Foods in Otay Mesa, Calif., near San Diego.
SAN DIEGO - Circle Foods, a tortilla and Mexican food manufacturer,
has opened a new production facility in Otay Mesa, Calif., in suburban
San Diego.
The 132,000-square-foot manufacturing plant and warehouse will

Holsum bakers in partnership with
Muscular Dystrophy Association
CHICAGO - The Long Co. on June 23
announced Holsum brand bakers will
partner with the Muscular Dystrophy
Association for a special promotion
this summer.
Packaging of Holsum products in
stores during the month of August
will highlight Holsum support of the
10 / June 30, 2009

Milling & Baking News

M.D.A. In addition, Holsum bakers
will contribute at least $20,000 to the
M.D.A.
Bakers will appear on their local Jerry Lewis Labor Day Telethon to present a portion of the donation.
Participating Holsum baking companies include Aunt Millie's Bakeries,

Mr. Schmidgall agreed to pay more
than $138,000 in fines. In addition, he
pled guilty to one count of conspiracy
to commit wire fraud.
In September, AIPC settled with the
S.E.C. and Department of Justice, acknowledging the wrongdoing by certain former officers and employees and
agreeing to pay a monetary penalty of
$7.5 million. The company also said it
would continue to cooperate with the
D.O.J. in any further investigation.
In settling with the S.E.C., AIPC
agreed to a consent injunction requiring future compliance with federal securities laws. MBN
At a June 22 ceremony, a dedication event was sponsored by Circle
Foods with Murphy Development
Co., the developer of the business
park where Circle Food's new facility was built. Present at the dedication were San Diego mayor Jerry
Sanders and Stephen R. Bronfman,
president and chief executive officer
of Claridge Inc.
Claridge, a private equity firm controlled by the Bronfman family, owns
Circle Foods together with a range of
food companies, most of which offer
high-end organic products.
With the expansion, Circle Foods expects to add 50 job positions in 2009.
"This new facility is the cornerstone
for our continued growth, giving us
the increased size and the latest, most
innovative equipment to drive all
parts of our business forward," said
Eric Brenk, general manager and chief
operating officer of Circle Foods.
Established more than 25 years
ago, Circle Foods has grown from a
neighborhood Mexican tortilla company into a specialty food manufacturer selling its products through a
range of retailers, including Costco,
Wal-Mart, Sam's Club, Whole Foods
and Trader Joe's.
The company's brands include La
Terra Fina, Tortillaland, Rotiland and
Nuevo Grille. MBN
Inc., Fort Wayne, Ind.; Butter Krust
Baking Co., Sunbury, Pa.; Holsum Bakery, Inc., Phoenix; Klosterman Baking
Co., Cincinnati; Lewis Brothers Bakeries, Evansville, Ind.; and Holsum de
Puerto Rico, Toa Baja, Puerto Rico.
"We are delighted to help Jerry's
Kids and think the M.D.A. is a perfect
fit for the Holsum brand," said Janine Knetl, marketing manager for The
Long Co. MBN
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Milling & Baking News - June 30, 2009

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