An Anchorage jury convicted Wasilla resident Karen Olson of taking steps to cover up fraud committed by the former president of Valley Dairy, Inc.
Olson, 68, faces up to 30 years in prison and a possible fine of up to $1 million. The charges against the former CEO included one count of false statements to influence the United States Department of Agriculture and Rural Development Program (RD) and one count of misprision of a felony, meaning Olson knew Valley Dairy President Kyle Beus was committing felony fraud but did nothing to stop or report him.
According to the case prosecutor, assistant U.S. attorney Retta Randall, trial evidence showed that in 2007, a one-time grant offering of $650,000 was made available by USDA and RD to fund one or more small dairy projects in an effort to support and expand the dairy industry in Alaska.
In subsequent years, Olson discovered that Beus had inflated invoices to the USDA and RD and received kickbacks of grant funds. Olson was aware that Beus used some of the money for personal use instead of paying the milk producers and construction vendors at the creamery. This, coupled with other instances in which Beas diverted funds, led to the Matanuska creamery closing in 2012.
Olson was acquitted on a third count of mail fraud. She remains out on bail and her sentencing is set for October.