Money Thomas Canning to plead guilty to mislabelling products as organic

13:26  13 october  2017
13:26  13 october  2017 Source:   Windsor Star

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A bankrupt Maidstone tomato processing company that received a controversial -million provincial grant is expected to plead guilty next month to purposely mislabelling products as organic . An order signed by a Toronto judge states that William (Bill) Thomas , owner of Thomas Canning

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The Thomas Canning Company is seen in Maidstone on Feb. 15, 2017.© Tyler Brownbridge, Windsor Star The Thomas Canning Company is seen in Maidstone on Feb. 15, 2017.

A bankrupt Maidstone tomato processing company that received a controversial $3-million provincial grant is expected to plead guilty next month to purposely mislabelling products as organic.

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An order signed by a Toronto judge states that William (Bill) Thomas, owner of Thomas Canning, has agreed to plead guilty on behalf of the company and pay a $40,000 fine. In exchange, several other charges against the company and Thomas himself will be withdrawn.

The Thomas Canning Company is seen in Maidstone on Feb. 15, 2017.

The judge’s order states the guilty plea must be entered no later than Nov. 23. Thomas’s next scheduled court appearance in Windsor is Nov. 6.

The guilty plea and $40,000 fine is part of a joint submission from prosecution and defence lawyers. But the judge’s order states the court is not bound by that submission.

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According to documents previously filed in Ontario court by the Canadian Food Inspection Agency, Thomas and his company are accused of 11 offences in contravention of the Food and Drug Act, the Consumer Packaging Act and the Canada Agricultural Products Act.

Thomas Canning and its owner are accused of labelling regular canned tomato products as organic.

The company and Thomas were also charged with falsifying the country of origin on their products between September 2013 and July 2015, passing off American tomato products as Canadian with labels that read “Product of Canada.”

Thomas was also charged personally with lying to a federal food inspector on Jan. 8, 2015, about canned tomato paste sold under the brand Tree of Life.

Thomas is expected to plead guilty on behalf of the company to unlawfully labelling canned tomato products in a manner that created an erroneous impression that regular tomato products were organic. Thomas Canning allegedly mislabelled the products between Sept. 1, 2013 and July 3, 2015, both before and after the province announced its grant to the Maidstone company.

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The company’s website, which is no longer accessible, previously stated that Thomas Canning charged a 20 per cent premium for organic products.

Laura Joy, William Thomas’s defence lawyer, couldn’t be reached for comment Thursday. Richter Advisory Group, the receiver for Thomas Canning, also didn’t respond to a request for comment.

The Canadian Food Inspection Agency refused to comment on the case.

“As this case is still before the Ontario Court of Justice, it would not be appropriate for the CFIA to comment at this time,” spokeswoman Natasha Gauthier wrote in an email.

The guilty plea would bring a close to one chapter in a series of woes for the company and the farmers who counted on it for their livelihoods.

Thomas Canning received a $3-million grant from the province in 2014 to build a new fruit and vegetable processing facility. The plant was never built.

Farmers planted additional crops, signing contracts with Thomas Canning to supply tomatoes to the new plant. Those additional tomatoes rotted in the field.

Before the company went into receivership earlier this year, nine farmers were suing Thomas Canning for $2.85 million for reneging on contracts to grow tomatoes in 2016.

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The Ontario Ministry of Agriculture, Food and Rural Affairs has said it’s fine with the way Thomas Canning used the money. The ministry said the money was used to create and retain jobs, rebrand its Utopia products and open up markets in Nigeria and China.

After receiving the $3 million, Thomas Canning went bankrupt. That process is still winding its way through court.

Richter stated in previously filed documents that one secured creditor, Bridging Finance Inc., is owed nearly $22 million. Company principal William Thomas and family members Robert Thomas, John Thomas and Julie Thomas claim they are owed nearly $1.2 million in shareholder loans.

071917-no_object-214575496-Thomas_-_03-W.jpg: Bill Thomas, vice-president of Thomas Canning, speaks on Feb. 21, 2014, at a news conference announcing $3 million in provincial funding for his Maidstone company.© Dax Melmer, Windsor Star Bill Thomas, vice-president of Thomas Canning, speaks on Feb. 21, 2014, at a news conference announcing $3 million in provincial funding for his Maidstone company.

Employees are owed more than $23,000, according to Richter.

Several leasing companies are named as secured creditors, but the amounts owed to them are listed as “unknown.”

In addition to the secured creditors, there are 99 other people owed more than $4.2 million.

twilhelm@postmedia.com

Thomas fires 70 to share lead after 3rd round of CJ Cup .
Justin Thomas fired a 2-under 70 in windy conditions to share the lead with fellow American Scott Brown after the third round of the CJ Cup on Saturday. Thomas offset a lone double bogey and a bogey with five birdies to reach the clubhouse at 9-under 207."I know for a fact I played better today than I did on Thursday when I shot a 9 under," Thomas said. "It’s just so hard out there. I’ve never played in a place where the wind swirls as much as it does here."Brown had back-to-back bogeys on Nos. 10 and 11 but recovered with two birdies on the back nine for a 71."It was playing tough today," Brown said.

Source: http://ca.pressfrom.com/news/money/-49277-thomas-canning-to-plead-guilty-to-mislabelling-products-as-organic/

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