Pilgrim’s Pride CEO indicted in alleged chicken price-fixing scheme

DENVER — Pilgrim’s Pride Corp. CEO Jayson Penn was among four agribusiness executives indicted Thursday by a grand jury for the U.S. District Court in Denver on antitrust charges tied to allegations that major poultry producers conspired to fix broiler chicken prices. 

The single-count indictment also charges Pilgrim’s Pride vice president Roger Austin, Claxton Poultry president Mikell Fries and vice president Scott Brady.

“Particularly in times of global crisis, the division remains committed to prosecuting crimes intended to raise the prices Americans pay for food,” Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division said in a prepared statement. “Executives who cheat American consumers, restaurateurs and grocers, and compromise the integrity of our food supply, will be held responsible for their actions.”

The indictment alleges that Pilgrim’s and Claxton executives conspired to rig bids and fix chicken prices between 2012 and 2017. The offense carries a maximum penalty of 10 years in prison and a $1 million fine.

The criminal investigation into chicken price fixing is ongoing. 

“The FBI will not stand by as individuals attempt to line their pockets while hard-working Americans and restaurant owners are trying to put food on their tables,” Timothy R. Slater, assistant director in charge of the FBI’s Washington Field Office, said in a statement. “Today’s announcement shows the FBI’s commitment to investigating allegations of price fixing so that the perpetrators can be held accountable.”

Pilgrim’s Pride, a Greeley-based subsidiary of JBS USA, saw its stock price fall 12.36% Wednesday. 

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