Former Affiliated Southwest CEO Pleads Guilty to Fraud

The former president and chief executive officer of Affiliated Foods Southwest has pleaded guilty to charges of defrauding its lenders, according to court papers.

LITTLE ROCK, Ark. — The former president and chief executive officer of Affiliated Foods Southwest has pleaded guilty to charges of defrauding its lenders, according to court papers filed here.

John Mills, who had served as the cooperative wholesaler's president and CEO since 2004, left the company early last year, shortly before it filed for bankruptcy protection. The company, based here, was subsequently acquired by Associated Wholesale Grocers [3], Kansas City, Kan.

Mills, in a plea agreement filed in federal court, admitted defrauding U.S. Bank through a "check kiting" scheme between Sept. 29, 2008, and Feb. 27, 2009. Mills faces penalties of up to 30 years in prison and a fine of up to $1 million, court documents said.

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