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Brothers accused of fraud sell Great Lakes Foods

Brothers Rassem "Russ" Kaloti and Ishaq "Isaac" Kaloti will sell their food distribution company, Great Lakes Foods, based in Menominee, Mich., the Milwaukee Journal-Sentinel reported. The brothers could face prison sentences in a federal fraud case, the article said.

In October, the Kalotis agreed to plead guilty to conspiracy and tax fraud charges connected to the hiding of millions of dollars using secret bank accounts in their grocery business. Isaac Kaloti also agreed to plead guilty [of] receiving stolen baby formula.

The brothers started Great Lakes Foods in 2000 after they sold a predecessor company to wholesaler Fleming Cos., which has since gone out of business, the article said. They are selling Great Lakes Foods, which has 95 employees, to businessman Tom Kuber. (Source: Milwaukee Journal-Sentinel, Dec. 15, 2011.)

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