The Company Behind “Project Honeygate” Stuck Claiming Bankruptcy

Anna Fleet
by Anna Fleet | October 3, 2013 @ 1:37 pm | 0 

First we were shocked by news of the biggest maple syrup heist in North American history. Then, this past February, the Department of Justice uncovered another sticky-sweet trail of guilt that led to the largest case of food fraud in U.S. history.

Dubbed “Project Honeygate,” the case involved the nation’s largest honey supplier, Groeb Farms, whose supplier, AWL (a company that operated out of Chicago from Germany), was illegally importing cheap and impure Chinese honey and mislabeling it to avoid hefty U.S. tariffs.

Unfortunately Groeb Farms was caught smack dab in the gooey pot of lies. As a result, the Michigan-based company was fined $2-million dollars and ordered to dispose of any remaining Chinese honey at their manufacturing facility.

Apparently, keeping the honey pot pure is pricy business, and Groeb Farms filed for bankruptcy on October 1, 2013 following a costly product loss and several lawsuits from various U.S. honey producers and distributors.

In the meantime, Groeb Farms plans to continue supplying honey to food manufacturers and food service companies.

Source: Business Week