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Peanut Corp. of America Officials Charged Over Salmonella


By Tom Schoenberg & Phil Mattingley

Published on February 21, 2013 6:02PM by Bloomberg

Four former officials of the Peanut Corp. of America were indicted by the U.S. over the sale of salmonella-tainted peanut products that sparked national outrage in 2009 after being tied to nine deaths.

Stewart Parnell, president of the now liquidated Peanut Corp., was charged along with three managers in a 76 count indictment unsealed yesterday in federal court in Albany, Georgia. He’s charged with conspiracy, wire fraud and introduction of adulterated food into interstate commerce with intent to defraud or mislead.

“It was part of the conspiracy that the defendants and others shipped and caused to be shipped peanut products before receiving the results of microbiological testing performed on said products,” according to the 52-page indictment.

The charges were filed four years after the salmonella outbreak set off a political firestorm in Washington. The recall sparked by Peanut Corp., one largest in the U.S., took more than 800 products made with peanuts off the shelves including cookies, crackers and cereal. Congress called Parnell to testify while President Barack Obama urged a “complete review” of the U.S. Food and Drug Administration because it failed to prevent contamination of peanut butter linked to the nine deaths and more than 700 illnesses.

Processing Plants

Closely held Peanut Corp., based in Lynchburg, Virginia, filed for bankruptcy in 2009 after the outbreak was traced to its processing plants in Georgia and Texas. Dead rodents and droppings were found near a production area, according to the Texas Department of State Health Services.

“When food or drug manufacturers lie and cut corners, they put all of us at risk,” Stuart Delery, who heads the Justice Department’s civil division, said at a news conference today in Washington.

Also named in the indictment are Michael Parnell, a vice president in charge of sales, Samuel Lightsey, an operations manager, and Mary Wilkerson, a quality assurance manager.

Daniel Kilgore, operations manager of Peanut Corp.’s plant in Blakely, Georgia, pleaded guilty yesterday to charges including conspiracy, fraud and introduction of adulterated products, according to prosecutors.

Food Companies

Kilgore conspired with the Parnells and Lightsey in a scheme to manufacture and ship salmonella-contaminated peanuts and peanut products to customers, including family-owned businesses and global food companies, according to the indictment. The customers aren’t identified by name in the indictment.

Prosecutors said that even when laboratory testing revealed the presence of salmonella in products at the Blakely facility, the conspirators failed to alert their customers. They also fabricated documents that showed the products were free of pathogens when no tests had been conducted or lab results tested positive for salmonella, according to the indictment.

Wilkerson, along with Stewart Parnell and Lightsey, are accused of trying to mislead inspectors from the FDA Administration who visited the plant on multiple occasions while investigating the salmonella outbreak.

Lawyers for Stewart Parnell said as the case develops “it will become apparent that the FDA was in regular contact with PCA about its food handling policy and was well aware of its salmonella testing protocols.”

No Intent

It will also be clear that Parnell “never intentionally shipped or intentionally caused to be shipped any tainted food products capable of harming PCA’s customers,” according to a statement from Tom Bondurant and William Gust of Gentry Locke Rakes & Moore LLP.

Lawyers for the other defendants couldn’t be immediately identified.

Internal company e-mails released by a House subcommittee in 2009 showed Stewart Parnell feared losses tied to salmonella. After some products tested positive for salmonella in one lab, no bacteria were found in re-testing and Parnell told Lightsey to “turn them loose.”

On Jan. 19, 2009, the week after the company recalled bulk peanut butter and peanut paste made at its Georgia plant, Parnell pleaded with an FDA official to let the company ship raw peanuts from the Georgia plant to the company’s Texas plant, according to another e-mail message. A truckload had been shipped the previous week.

Peanut Money

“Obviously we are not shipping any peanut butter products affected by the recall but desperately at least need to turn the Raw Peanuts on our floor into money,” according to the e-mail. “We have other raw peanuts on our floor that we would like to do the same with … This is material that would be cooked/further processed by us in our Texas facility and tested afterwards as all our products are.”

Sally Greenberg, executive director of the National Consumers League, a Washington-based advocacy group, said she was gratified that the Justice Department took action against the officials.

“When food manufacturers choose to disregard food safety rules, ignore evidence that their products are dangerous and as a result consumers become ill and even die, they should be held responsible in a court of law,” Greenberg said in an e-mailed statement.

Michael Moore, U.S. attorney in Georgia, said the investigation took time because of its complexity, as well as the alleged obstruction by the company’s executives.

“We count on people who are supplying food to be honest when we have an emergency like this,” Moore told reporters today in Washington. “When they don’t, that obviously makes law enforcement’s job and the health agencies job more difficult.”

Moore said his office has been in contact with lawyers for the individuals indicted and expects them to appear in court within the next week. No arrests were made.

The case is U.S. v. Parnell, 13-cr-00012, U.S. District Court, Middle District of Georgia (Albany).

February 22nd, 2013

ScanTech hopes to change produce safety


From its beginnings at Georgia Tech’s business incubator, ScanTech hopes to change

 produce safety

 By Chip Carter, Produce News Daily | October 11, 2011 
Scantech

These blackberries were harvested at the same time and come from the same lot. The ones on the top were untreated; the ones on the bottom were treated with ScanTech Sciences’ patented electronic cold-pasteurization process.(Photo courtesy of ScanTech)

 

ATLANTA — It began with an idea to improve Homeland Security, but ScanTech Sciences Inc. now offers the next great hope in the battle against produce pests and pathogens.

In what was once a blighted area of midtown Atlanta, there now stands a complex of gleaming high-rises, a bustling development district — Technology Square — affiliated with the Georgia Institute of Technology. The Advanced Technology Development Center, here, is the birthplace of ScanTech and serves as an incubator for forward-looking businesses of all description.

ScanTech Vice President of Operations Chip Starns sits in an office, looking out a window at the hustle below and talking about the opportunities and challenges of marketing a developing and often misunderstood technology: electronic cold pasteurization, also known as ECP.

Mr. Starns splits time between ScanTech Sciences’ Atlanta location (the original parent company, ScanTech Holdings LLC was founded here in 2002 and is still headquartered at the ATDC) and its headquarters in Houston, established in 2009. He understands that people are skeptical of food products treated with any kind of radiation. His mission is to explain and demonstrate the different between electronic cold pasteurization and traditional methods of irradiation.

It is a public relations battle to be sure — but science and government seem to be squarely on the side of ECP.

ScanTech Holdings originated in Atlanta, birthed by the Georgia Tech incubator system, but other areas now recognize the technology’s potential.

In January 2010, the state-funded Texas Emerging Technology Fund awarded $2 million to ScanTech Sciences in a partnership with Texas A&M University.

“ScanTech’s technology will help improve food safety while creating jobs and growing the economy in the Rio Grande Valley,” Texas Gov. Rick Perry said at the time of the grant.

“E-beam technology is radiation, but it’s not gamma: It’s generated radiation” utilizing a focused concentration of electrons to kill pathogens, Dr. Craig Nessler, director of Texas AgriLife Research at Texas A&M, told The Produce News. “I think people will come to accept a certain amount of irradiated food. It’s a win-win: You could get rid of human pathogens and improve phytosanitation, zap bugs and spores so that particular imported material — particularly produce — would be a lot cleaner.”

ScanTech Sciences sees great potential in the ever-increasing flow of Mexican produce through Texas ports of entry into the United States — and also sees opportunity in making those true two-way gateways, Mr. Starns said.

For example, this summer, for the first time in decades, Georgia growers were able to ship peaches to Mexico after agreeing to negotiate the torturous tangle of protocols and practices. Had electronic cold pasteurization been part of the picture at the outset, those negotiations could have been resolved in minutes, not years.

“We’ve just created some growth markets for farmers and industries,” Mr. Starns said. “We can tell the Georgia and South Carolina peach industry we just created an export market” without the need to jump through endless regulatory hoops.

ScanTech’s proprietary and patented ECP process is fairly simple, though it was the result of more than 10 years of research and product development originally aimed at helping Homeland Security officials find better ways to scan cargo.

The technology is the brainchild of Chairman and Chief Executive Officer Dolan Falconer Jr., who helms ScanTech Holdings along with President Henry Sutherlin and Chief Technology Officer and Vice President of Engineering & Manufacturing Rocky Starns. The company owns 13 patents for its advanced electron beam accelerator and X-ray technologies, which are used for cargo and baggage scanning, medical treatment, medical-equipment sterilization and waste sanitation, gas effluent purification, and the manufacture of plastic and rubber products.

It did not take the ScanTech team long to realize its technologies might have applications in agriculture and food processing as well.

With the Atlanta-based Centers for Disease Control virtually in its backyard, the company was well aware of numbers from that agency that show as much as 25 percent of the world’s food supply is lost annually to pests and bacteria — not to mention the food-borne ailments that strike 76 million Americans annually and cost the U.S. economy more than $33 billion each year.

For foodstuffs, ScanTech Sciences’ STS-10/20 electron beam system accelerates electrons to near the speed of light through highly conductive copper housings above and below conveyors. The beams penetrate deeply enough to kill pests and pathogens — and provide remarkable increases in shelf life — while keeping radiation exposure far below U.S. and world standards for foodstuffs.

Berries treated with ECP resist mold as much as 21 days longer than untreated fruit. Ripe tomatoes can be held on the vine for up to five days versus 48 hours, resulting in a more flavorful product at market. There is no perceptible change in taste or appearance.

While there are other ECP facilities in operation, Mr. Starns said, “There are not many in the world. It’s emerging, but not here yet. We are one of the few companies in the world that patent and design our own systems.”

Mr. Starns is convinced that he can make the public and the industry understand the difference between the e-beam pasteurization process and other methods that use heavy metals like cobalt as a fuel source.

While the company’s patented technologies have been thoroughly vetted by peers and governmental agencies, “We’re hoping to do studies that mean something to growers, the industry and consumers,” Mr. Starns said. With the potential savings ECP represents, “even in percentages, it’s millions of dollars.”

April 18th, 2012

ScanTech has high hopes for irradiation of produce


By Bruce Blythe
Published on 04/01/2010 01:21PM by The Packer

Chip Starns sees big irradiation opportunities south of the border.

Starns said his company, Houston-based ScanTech Sciences Inc., plans to build 20 irradiation plants in Mexico and Central and South America over the next five years to process fresh fruits and vegetables headed for the U.S.

The U.S. market for irradiated produce is poised for significant expansion, Starns said, as traditional treatment methods are phased out and the food industry seeks more effective, efficient ways to combat pathogens such as E. coli and salmonella.

“It’s pretty much in the infancy stage, but you can see the wave coming,” said Starns, ScanTech’s vice president. Irradiation “could open up even more an already-global food supply.”

ScanTech uses an electron beam to break down the DNA of bacteria and insects, killing them or making them unable to reproduce. Other types of irradiation use gamma or X-rays.

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April 7th, 2010

Irradiation pitched as peach crop defense


By Dan Chapman
The Atlanta Journal-Constitution

Flies come and flies go, but one particularly pernicious bug may one day imperil Georgia’s big-dollar peach and blueberry crops.

Promising irradiation technology developed by an Atlanta company, though, could zap the fly all the way back to Asia.

Tuesday, U.S. and Georgia business and agriculture officials met here to discuss a $250,000 U.S. Department of Agriculture-funded study on irradiation’s impact on the state’s peach and blueberry crops.
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March 24th, 2010

ScanTech Sciences Presents at Lockheed Martin-sponsored Investor Showcase


Company Unveils Electronic Cold-pasteurization Technology
Arlington, TX – March 22, 2010 – ScanTech Sciences, a developer of advanced food-treatment systems, was selected as a top Texas Emerging Technology Fund presenter this year at WBTshowcase (World’s Best Technologies).

The event, held during the week of March 15 in Arlington, TX, provides commercial market exposure to innovative technology firms from around the world. Attending this year’s event, which was sponsored by Lockheed Martin, were venture capitalists and other investors from Silicon Valley to New York.
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March 22nd, 2010

A Scientific Ray of Hope for Food Safety


ScanTech relocates from Atlanta to roll out ‘cold’ pasteurization process
Houston Business Journal – by Christine Hall Reporter

cool-pasteurization
Technology can preserve some kinds of fresh fruit as much as three weeks longer than traditional methods. Raspberries treated with ScanTech’s pasteurization process are pictured top right, compared to untreated berries.


ScanTech Sciences Inc. has a cooler way to heat up consumers’ enthusiasm for eating fruits and vegetables.

Armed with a $2 million infusion from the Texas Emerging Technology Fund, the fledgling company has relocated from Atlanta to Houston to market its “cold” electronic pasteurization technology for food treatment.
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February 5th, 2010

Texas Pledges $2 Million to ScanTech Sciences


Investment will help improve food safety and bring Electronic Food Pasteurization Technology innovation to Texas

govperry

Texas Gov. Rick Perry and CEO of ScanTech Sciences Dolan Falconer


Houston – January 5, 2010 – The Texas Emerging Technology Fund (TETF) has awarded $2 million to ScanTech Sciences Inc., a developer of “cold” electronic pasteurization technologies designed to improve food safety.

As a result of the TETF investment, ScanTech Sciences is moving its headquarters from Atlanta to Houston.  ScanTech Sciences has been working withTexas A&M University on advanced cold-pasteurization food-treatment research.
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January 27th, 2010