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Egg titan, son plead guilty in food safety case

By WTOP Staff

MARGERY BECK
Associated Press

SIOUX CITY, Iowa (AP) — A self-made titan in the egg industry, his son and the Iowa company they ran pleaded guilty Tuesday to federal food safety violations stemming from a nationwide salmonella outbreak that sickened thousands in 2010.

Austin “Jack” DeCoster and his son, Peter DeCoster, pleaded guilty to misdemeanor charges of introducing adulterated food into interstate commerce. U.S. District Judge Mark Bennett will later decide their sentences, which could be up to one year in jail, fines of $100,000 apiece and additional restitution for victims.

In exchange for the DeCosters’ guilty pleas, they will be allowed to file a motion arguing that it would be unconstitutional to sentence either of them to any type of confinement, according to their Washington-based attorneys.

“That includes home confinement,” attorney Frank Volpe said, adding that it could likely several months before the DeCosters are sentenced.

Their company, Quality Egg LLC, pleaded guilty to charges of bribing a U.S. Department of Agriculture inspector, selling misbranded food and introducing adulterated food into interstate commerce. The company has agreed to pay a $6.8 million fine — one of the largest ever related to food safety — under a plea deal that Bennett could accept or reject.

The guilty pleas were entered during hearings at the federal courthouse in Sioux City. Jack DeCoster, 79, lives in Turner, Maine. Peter DeCoster, 51, lives in Clarion in northern Iowa, near the rural area where Quality Egg and its affiliates once produced millions of eggs.

The salmonella outbreak prompted a recall of 550 million eggs by Quality Egg and another Iowa company that used its feed and chickens, and led to the collapse of the vast egg production empire that DeCoster built from modest beginnings in Maine. Federal investigators spent years scrutinizing its business practices in the aftermath, as the DeCosters gave up control of their egg production facilities in Iowa, Maine and Ohio and settled dozens of legal claims from those who were sickened.

Plea agreements filed Monday say the company sold eggs that were tainted with salmonella from January 2010 until August, when the recalls were issued. Federal prosecutors said they found no evidence that the DeCosters were aware they were selling tainted products, but that as corporate officers, they can be held legally responsible.

“They’re acknowledging that it happened on their watch,” said defense attorney Tom Green.

The company admitted that former Quality Egg manager Tony Wasmund and another employee bribed a now-deceased USDA inspector on at least two occasions. Those bribes, including a $300 cash payment, were meant to influence the inspector to release pallets of eggs that had been retained for failing to meet federal standards because too many were cracked, dirty or leaking.

The company also admitted that, with Wasmund’s approval, it had a longstanding practice of putting false processing and expiration dates on labels to make eggs appear fresher than they were. That practice helped the company circumvent laws in California, Arizona and elsewhere that require eggs to be sold within 30 days of their processing dates.

Wasmund cooperated with prosecutors under a deal in which he pleaded guilty to a bribery conspiracy. He could get a reduced sentence in September for his cooperation.

DeCoster’s egg empire expanded even as he racked up labor, food safety and immigration violations. Bennett, the judge, sentenced DeCoster to five years of probation in 2003 for knowingly hiring people who were in the U.S. illegally.

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Associated Press reporter Ryan J. Foley contributed to this report from Iowa City.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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