Prosecutors claim that he company�s intent was to defraud, and that the fraud cost consumers some $10,000. However, Baldhoff maintains the labelling problem was "an honest mistake," the result of an employee, who had repeatedly mislabelled products over a two-year period.
The company has signed a plea agreement, pleading guilty to fraud, but Baldhoff said that the mislabelled meat totalled only 8,000 lbs., not the 40,000 lbs. the government alleged. Brandy Meats has also been charged with selling 4,700 lbs. of ground beef as ground sirloin.
USDA first uncovered the labelling issue in 2003, and a criminal investigation was opened when a further check of Brandy Meats' beef showed that the problem had not been corrected.
Baldhoff could face up to three years in jail and a fine of up to $250,000.