Jayson Penn Indicted By Federal Grand Jury In Denver; Feds Find A Chicken Conspiracy At Greeley-Based Firm
by Glen Richardson
A federal grand jury in Denver has indicted Jayson Penn, the CEO of Greeley-based Pilgrim’s Pride, and three other current or former chicken industry executives for price fixing. The grand jury in U.S. District Court here indicted all four with one count of conspiring to fix prices for broiler chickens from at least 2012 through 2017. A trial is scheduled to begin this month (August).
Scratching Out A Living: Headquarters of the second-largest U.S. chicken company Pilgrim’s Pride is in Greeley. The entrance includes a bust of founder Lonnie “Bo” Pilgrim. The firm reported annual revenue last year (2019) of $11.41 billion.
The indictments came after grocers, retailers and consumers accused Pilgrim’s Pride, Tyson Foods Inc., and other poultry processors in a lawsuit of conspiring since 2008 to inflate prices for broiler chickens. Fabio Sandrio, chief financial officer, is serving as interim president and CEO.
The other executives allegedly involved in the scheme include former Pilgrim’s Pride vice president Roger Austin, Claxton Poultry Farms President Mikell Fries, and Scott Brady, a former Pilgrim’s Price executive who joined Claxton in 2012. Pilgrim’s Pride supplies chicken for Costco and Yum Brands’ KFC, while Claxton is a supplier for Chick-fil-A.
$11.4 Billion Income
Pilgrim’s Pride is the second-largest U.S. chicken company, with reported annual revenue last year (2019) of $11.41 billion. It is majority-owned by Brazilian meat giant JBS. Tyson Foods Inc. — the largest U.S. poultry processor by sales — meanwhile says it is cooperating in the Justice Department’s probe into the matter, under a leniency program that will let Tyson avoid criminal prosecution.
Penn pleaded not guilty to the federal charges, while a judge barred him from contacting poultry buyers allegedly victimized by the scheme. He also agreed to surrender his passport and not leave the country.
U.S. Magistrate Judge Kristen Mix said at the hearing that Mr. Penn can remain free on personal recognizance, and can travel. She imposed conditions on his actions while he awaits trial, most notably that he can’t contact employees of eight companies that are customers of Pilgrim’s and are alleged victims of price-fixing by Mr. Penn and co-conspirators. The Judge also said Mr. Penn couldn’t contact price negotiators at other chicken suppliers who allegedly participated in the price fixing.
Penn On Paid Leave
Jayson Penn joined Pilgrim’s in March of 2011 as Senior Vice President of the Commercial Business Group. He moved up to President of Pilgrim’s USA in 2017 and was promoted to President-CEO in March of 2019.
Indicted CEO: Jayson Penn, the CEO of Greeley-based Pilgrim’s Pride, has been placed on paid leave following pleading not guilty to the federal charge.
Pilgrim’s Board placed Penn on leave with pay following the hearing. He makes $4,418,340 as President-CEO at Pilgrim’s Pride.
“The Board takes the recent allegations very seriously and believes it is in the best interest of both Jayson and the company that he is given the opportunity to focus on his legal defense at this time,” Board Chairman Gilberto Tomazoni said in a statement.
Ruffled Feathers
“After years of talk, the feds finally pounced,” observe legal experts familiar with how the Department of Justice executes prosecutions of business organizations. They say it is one of the stranger examples of alleged market-rigging in a long history of cases, made more unusual in that the chief executive of a company that big is actually facing criminal charges and as many as 10 years in prison. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by victims if either amount is greater than $1 million, according to the Department of Justice.
Chicken House Pride: Founder Bo Pilgrim, at right, performed in ads dressed in pilgrim garb with a pet chicken named “Henrietta.” His Texas mansion was nicknamed “Cluckingham Palace” by neighbors. He sold the company to JBS in 2009 and it was moved to Greeley.
The charges the U.S. Justice Department laid out in its indictment appear to document executives at competing companies colluding to share pricing and bidding information from 2012 through 2017 in the cut-throat world of commodity chicken. Makan Delrahim, the head of the government’s antitrust division, said in a statement: “Executives who cheat American consumers, restaurateurs, and grocers, and compromise the integrity of our food supply, will be held responsible for their actions.”
Vertically integrated, Pilgrim’s Pride is involved in breeding, hatching, raising, processing and distributing chicken. The company produces some 11 billion pounds of chicken products annually and serves more than 6,000 retail food outlets, distributors and food service operators.
Chicken Feed Start
Pilgrim’s Pride traces its roots to Pittsburg, Texas, where Lonnie Alfred “Bo” Pilgrim opened a chicken feed store in 1946 with his older brother, Aubrey. They grew the fledgling company by handing out free chicks along with purchased bags of feed sold to customers.
Bo Pilgrim would often dress in pilgrim garb, complete with a pet chicken named “Henrietta,” to perform in advertisements. The extravagant Texas mansion where he lived was dubbed “Cluckingham Palace.” Set on 43 acres, it had 10 bathrooms, an indoor pool, cinema and gymnasium.
He sold the international poultry operation to Brazilian company JBS in 2009, and its headquarters was moved to Greeley. He died in 2017 at age 89.
“I am still making order out of chaos by reinvention.”
— John le Carre
by Luke Schmaltz
Jeff Bezos’ Amazon has prospered greatly from the Covid-19 shutdown along with McDonald’s, Walmart, Target, and many other wealthy Fortune 500 corporations.. Conversely, many of the most unfortunate economic casualties of the Covid-19 shutdown are small businesses — a staggering percentage of which will not recover. Among these, many of the hardest hit are family-owned food and beverage establishments and independent retailers.
Currently, the nation’s financial spine appears to be either broken or at the very least severely out of alignment. Unfortunately, the middle class can’t just go hobbling down to the economic chiropractor and get its mangled column of vertebrae snapped back into place. Rather, the health of each small yet crucial section is going to have to be nurtured back to solvency one joint at a time.
Jeff Bezos
A Personality Crisis
Doing this is going to require innovation, experimentation, and the willingness to abandon some elements of the old fiscal paradigm. The Washington Post recently reported that over 100,000 small businesses have closed down permanently due to the Coronavirus fallout, and more are expected. This year’s decimation of small business has created a massive void in the marketplace as a whole. The character and warmth of family-owned and operated businesses that are no longer there has left consumers with an ever-dwindling set of bland, prefabricated cookie-cutter options. As most folks with even a fraction of personality will agree — that will not do.
The independent entrepreneurial spirit is strong in many Americans, and some would rather work for themselves 80 hours a week than clock in and out of a regular job and toe the line to the corporate status quo. Independent mom and pop businesses can and will etch their place in the economic landscape once again. If you are willing to step out onto shaky ground, there are a few takeaways from the current crisis you can arm yourself with so that the next stay-at-home order will not mean curtains for your piece of the American Dream.
Brass Tacks Of Business
Boarded Up: Bracing boards on windows does not brace the backbone of the economy.
Retail shops and dine-in restaurants carry the always present, ever-increasing burdens of rent, insurance, property tax, loan payments, utility bills and on and on. Before dollar one can be considered profit, these costs must be met. If your passion is preparing delicious food or supplying people with items they need, consider operating from modest digs for starters or better yet, skip the storefront altogether and set up shop from home. Rather than wait for random foot traffic to wander through the door, you might consider marketing to your immediate community and perhaps to an extended clientele within reasonable, deliverable radius. Plus, if your business is non-perishable goods, there’s always the good ol’ United States Postal Service.
Interact With Your Neighbors
Neighbors: Communities are built on relationships between neighbors.
By creating commerce and delivering value to your community, you are playing an important role in bolstering your small section of the backbone. In this scenario, your neighbors and fellow Denverites are your clientele, and developing relationships with them is crucial to your success. For this to happen, however, there must be a general consensus that fast food and big box stores are not the only options when it comes to enjoying professionally prepared meals and purchasing clothes, accessories and gifts. With the unfortunate dwindling of mom and pop places to frequent, people are eventually going to get sick of unhealthy fast food, generic products and soulless interaction. This newly-emerging niche is where small, home-based and low-overhead businesses owners can step in and make a living — and perhaps a difference in their community.
Reach Out In Old And New Ways
Spread the word about your products and services by talking to people in your immediate community. If the quality you present is on par with your passion for your business — those you serve will almost certainly tell their family, friends and neighbors about you. Also, the internet, despite its flaws, is still a powerful tool for doing business — perhaps now more than ever. You can cheaply and effectively build and maintain a clientele via internet marketing — specifically by email. You will need a basic website, an on-page email capture feature and an email management service. All can be acquired and maintained for a few dollars a month. The scope of this article is not broad enough to go into all of the nuts and bolts of this, but please know that for the curious, there are volumes of free information available about every facet of online marketing.
Subvert The Supply Chain
Locally sourcing raw materials is an essential component of a community-focused, small business resurgence. Large agricultural distributors are in the same category as fast food chains and corporate retailers. They are only concerned with numbers and have no contingency in their business plans for building and sustaining communities. On the other hand, according to farm flavor.com, there are 36,180 farms and 156 farmers markets in the state of Colorado. Plus, delivery services such as Grub Hub, Door Dash and Uber Eats are available to deliver just about anything edible you may produce to your local customers. As the locally-sourced, delivered inventory model grows, so too will regional services designed to meet that demand. Currently, Coloradofreshproduce.com and Farmtoforkcolorado.com are serving the entire Denver metro area and surrounding suburbs.
While some of what is presented here is speculative, the fundamentals of what make small businesses volatile are definite: high overhead, a disconnect with the community and outdated marketing strategies. What makes them invaluable, however, is that they are run by human beings who share the same aspirations, concerns and neighborhood as you.
The Gaylord Rockies Resort & Convention Center reopened for reservations on June 25, 2020, after being closed due to the Covid-19 pandemic. Staff members, wearing masks and having been retrained for enhanced cleaning technologies, were eager to greet guests as they checked in for the first time in months.
Outdoor Pool: The Arapahoe Springs pool now requires reservations. Each guest can choose between an 8 a.m. to 2 p.m. or 3 p.m. to 9 p.m. slot for each night of their stay. A limited number of guests are allowed in for each time slot.
The reopening comes with limited capacity and strict social distancing measures. The resort has set up directional arrows for walking throughout the resort, hand sanitizing stations throughout, and limited restaurant availability. The Mountain Pass Sports Bar, which features a 75-foot viewing screen, the largest in the state, is the only restaurant open. In addition, the Arapahoe Springs Bar & Grill near the pool, Rockies Marketplace, and the taco bar near the Pinyons bar are other options. The Pinyons bar now forms a single file line to order drinks which allows for social distancing. For the time being, the other restaurants are closed. However, the resort does allow outside food to be brought in. Convenient options are services such as Uber Eats or GrubHub.
The Arapahoe Springs pool area is now under a reservation only system. Guests can choose either an 8 a.m. to 2 p.m. or 3 p.m. to 9 p.m. slot. The pool closes from 2 p.m. to 3 p.m. every day for enhanced cleaning measures. These reservations allow staff to monitor how many people are in the pool for each time slot and limit the number of guests there at once. For guests with younger kids, it is recommended to reserve the 8 a.m. to 2 p.m. shift as the pools and lazy river are less crowded during that time slot.
The pools are definitely the resort’s main attraction. There is an indoor and outdoor pool (which includes an infinity pool), an outdoor lazy river, and three water slides. This water park is spread out over 22,000 square-feet which allows for proper social distancing. The entire resort is situated on 85 acres of land, so it never feels crowded even under normal circumstances. Guests can reserve a cabana if they want their own dedicated space. Or they may snag a chair by the lazy river and relax.
Every night at 9 p.m., the resort plays a kid-friendly movie on the lawn with plenty of room for families to spread out. They also have games such as bingo on the lawn. The activities are less than usual but it is still a nice getaway if families feel the need to get away for a couple of days yet are not ready to jump on an airplane.
Gaylord Rockies is near Denver International Airport and is a Marriott property that opened in December 2018. The 486,000 square feet of convention space makes it the largest combined resort and convention center in Colorado. It is the fifth Gaylord property to open with the others located in Washington, D.C, Nashville, Orlando, and Dallas.
The Gaylord Rockies Resort & Convention Center is located at 6700 North Gaylord Rockies Boulevard. For more information about the resort or to make a reservation, visit www.gaylordrockies.com.
There were high hopes when 13-year Denver police veteran Paul Pazen was appointed the Chief of the Denver Police Department (DPD) following the retirement of the highly controversial Robert White. White’s seven-year reign was marked by controversy after controversy and he was largely detested by the police officers themselves. Mayor Hancock’s appointment of Pazen from within DPD was popular with the rank and file. A former Marine, Pazen has an attractive appearance and seems to have at least average intelligence. Until July of this year, he generally received plus marks from the press and the public at large.
Denver Police Chief Paul Pazen
He has now, however, proven himself to be dishonest and a coward to all concerned. Those attributes have brought shame on the DPD at just the wrong time, when police departments across the country are under attack.
Every year, for the last five years, attorney Randy Corporon and organizer Ron MacLachlan have held a “Back the Blue Rally” at Civic Center Park in mid-July, without incident. When Corporon obtained a permit for this July, Pazen told him he did not want a rally this year, asserting it could get his officers hurt. Corporon responded in shock, indicating this of all year’s his officers needed support and that citizens have a First Amendment right even if Pazen didn’t believe in the same.
The rally attended by approximately 250 people, including celebrity Michelle Malkin and House Minority Leader Patrick Neville, started off with the Pledge of Allegiance and a prayer, when a mob of approximately 750 ANTIFA and BLM supporters smashed into the event blaring horns and attacked the rally participants. Women. including Michelle Malkin, were punched and beaten with batons. MacLachlan was badly bloodied with bull horns and skateboards. Dozens of DPD officers did literally nothing while the carnage was occurring. A grand total of one arrest was made for “public fighting.” Only after all of the rally participants had left, and ANTIFA and BLM rioters went after the police themselves did the DPD use pepper spray.
It was one of the most shameful moments in the history of the DPD. It was obvious that the officers were ordered to stand down by Pazen who had marched earlier in the summer arm and arm with BLM.
But if the event which made national news wasn’t bad enough, Pazen’s performance on media to justify his actions bordered on criminal. He appeared on the Steffan Tubbs show on 710 KNUS and the Dan Caplis Show on 630 KHOW claiming his police had been valiant in defense of the citizens and moreover it was the fault of the rally organizers. He claimed under permit orders for an event in the City and County of Denver, you must supply your own barricades and security. He also claimed that the organizers had said they had 200 security personnel for the event which was obviously a lie by him. According to Pazen, if you are a group of citizens in the City and County of Denver and want to express your First Amendment rights you must provide your own street army to bloodily battle it out with those who want to squash your freedom of speech. According to Pazen, Denver is no different than Berlin in the 1920s where deadly street battles were a common occurrence.
It is not clear whether Pazen is indirectly supporting the BLM position that the police need to be abolished. If they won’t protect its citizens from attack, who needs them? Devious, dishonest and cowardly, Pazen is a bad political hack for the mayor. If the police in the City and County of Denver ever want any support from anyone, Police Chief Paul Pazen needs to be removed and the sooner the better.
Denver’s food scene has taken a hard hit, caused by the recent pandemic, with long standing restaurants such as Old Chicago, formerly located at 1280 S. Colorado Boulevard, permanently closing their doors. However, conversely the Mile High City is welcoming its newest food hall, Junction Food & Drink, just down the road at 2000 S. Colorado Boulevard. The new food hall is managed by National Food Hall Solutions, a Texas-based company founded in 2018 that owns and operates various food halls.
Interior seating at Junction Food and Drink, photo provided by Lincoln Property Company.
This addition comes as part of the enhancement project at the Colorado Center, which includes a Dave & Buster’s, an IMAX theater, and the Colorado Boulevard light-rail station. Colorado Center is a mixed-use, transit-oriented development located between Downtown Denver and the Denver Tech Center. It comprises four Class A office towers totaling approximately 713,000 square-feet with a rooftop event space and 11,569 square-feet of high-end retail.
The 12,220-square-foot food hall will feature 10 food stalls, the Denver-based Sonder Coffee & Tea stand, plus a 40-foot bar and seating for 400 people, which will include both indoor seating and a 4,000-square-foot outdoor patio. Aside from its unique collection of chef-driven food vendors, one of the food hall’s biggest perks is its abundance of parking. The nearby parking garage offers ample space for parking with unlimited parking on the weekends.
With focus on small businesses, Pat Garza, the President and CEO of National Food Hall Solutions, wanted to feature vendors focused on local, quality-driven, authentic foods. From California-style street tacos to Nashville-inspired fried chicken, there is something that will satisfy everyone’s taste buds.
Exterior of Junction Food and Drink, photo provided by Lincoln Property Company.
Vendors include the following:
Big Wave Taco Shop: Founded by Chef Troy Guard, Big Wave Taco Shop, part of the Denver-based TAG restaurant group, will feature California-style tacos with various salsas, chips and queso.
Bird on a Wire Southern Chick’n: Nashville-style chicken and Southern favorites from the Garner Brother’s family-owned restaurant. Choose from fried chicken sandwiches, southern smoked wings, chicken tenders, plus sides including fried pickles, coleslaw, waffle fries and more.
Ebisu Ramen and Sushi food stall at Junction Food and Drink, photo provided by Lincoln Property Company.
Ebisu Ramen and Sushi: Chef Soon Choi, a former head chef from Sushi Den, brings Ebisu Ramen and sushi with a menu of small plates, sushi rolls, sushi bowls and ramen.
Grind and Grill Burger: A family-owned elevated burger concept, Grind and Grill Burger offers a wide variety of burgers, fries and shakes.
Lazo Empanadas: Serving traditional Argentinian, farm-fresh empanadas, Lazo is a local favorite with four other locations in Denver.
Mr. Miner’s Meat & Cheese: With its first location at Golden’s Tributary Food Hall & Drinkery, Mr. Miner’s Meat & Cheese will open its second location at Junction Food & Drink. The menu will include meat and cheese charcuterie boards, salads, sandwiches and a variety of shareables.
Paciugo Gelato: Using the freshest fruits and all-natural ingredients, Paciugo Gelato serves up gelati and sorbets the traditional Italian way. Their menu will feature gelato, frappes, gelatee and pastries.
Pete’s-A-Pie of Denver: A chef-driven purveyor of pizza using fresh, all-natural ingredients, Pete’s-A-Pie of Denver will feature New Haven-style pizza by the slice and whole pie.
Shawarma Shack: A Mediterranean food experience where patrons get front row access to the mesmerizing slow cooked meats roasting on spits, Shawarma Shack will also offer vegetarian and vegan options.
Smok Barbeque: With a focus on classic barbecue from across the county, including special notes from Austin, Texas and Kansas City, Smok will feature BBQ sandwiches, a variety of smoked meats and tasty sides, plus brisket and pulled pork tacos.
In addition to the food stalls, the Junction Food & Drink bar will offer a line-up of local craft beers and wine, plus a full bar serving up refreshing summer drinks.
Junction food hall is set to open early August with all the proper standards in place for social distancing. Adhering to all guidelines, each table will be six feet apart, with additional tables outside for eating and drinking. They will also offer curbside pick-up for food to go.
For further information, visit their website at junctionfoodanddrink.com. Junction Food & Drink at Colorado Center is a project of the partnership between ASB Real Estate Investments and Lincoln Property Company.
Out of everything that’s been lost over the past few months, one of the few things that won’t be lamented is the brown cloud of pollution hanging over Denver like a giant swarm of gnats.
Composting is a clear, logical way to reverse global warming on an individual scale.
As the city reopens, the brown cloud will return, but if you happened to go outside and glance upward anytime in late March, April or May 2020, you were probably shocked at how blue the sky actually is — even over a large city. In early April, The Denver Post reported an 80% decrease in sulfur oxide in the downtown area and up to 50% reduction of particulates such as nitrogen dioxide and nitric oxide compared to data from the same time in 2019.
Although the shutdown briefly reduced carbon emissions at home and across the globe, the respite is not nearly enough to reverse 200+ years of industrialization. If a significant reversal of global warming is to occur, everyone has to do their part. This does not mean you have to wear hemp sandals and ride a bamboo bicycle to work. You can actually help the planet out by doing less, that is, when it comes to throwing away grass clippings, dead tree branches and other detritus generated from landscaping and routine yardwork.
The Basics
But first, for those who may yet be unaware, the combustion of fossil fuel in automobiles, industrial machinery and farming equipment along with other agricultural activities releases carbon dioxide into the atmosphere. According to the U.S. Energy Information Administration, energy-related CO2 emissions across the globe are projected to increase from 32 billion metric tons in 2016 to 35 billion by the end of 2020. This atmospheric carbon, combined with methane, sulfur oxide, nitrogen dioxide and nitric oxide make up what are known as “greenhouse gasses.” The greenhouse effect occurs as these gasses allow sunlight to pass into the atmosphere, yet they do not allow heat from the planet to radiate into space. The result is global warming, which if allowed to continue, can have devastating effects on human populations worldwide — especially in coastal areas.
Carbon emissions from here can be reduced from the same place, one yard at a time.
Make The Yard Work
While the population as a whole might be able to reduce how much they travel via automobile, bus and airplane, curtailing the use of fossil fuels is not enough to reverse global warming. As an individual, however, you can lessen your carbon footprint by decreasing the amount of atmospheric carbon that originates from your front and back yard. Activities once deemed as essential must be reexamined through a CO2-awareness lens. Upending the soil for gardens, incessant cutting of grass, trimming of hedges and pruning of trees all release carbon in one form or another. Tilling and digging opens up the topsoil — and the escaping carbon mixes with the ever-present atmospheric oxygen and becomes CO2. Meanwhile, organic material in the form of grass clippings, hedge trimmings and tree twigs that gets hauled off to the landfill generates methane as it decomposes.
A Novel Approach
The brown cloud was lifted, but global warming is bigger than a brief shutdown.
Carbon sequestration is the process of removing carbon dioxide from the atmosphere and storing it through either biological or geological means. Plant life on your property is already doing this, all you have to do is to not interrupt the process with traditional yard maintenance protocols. Instead, you can leave dirt and soil undisturbed by growing flowers, plants and vegetables in raised garden beds. This leaves the soil intact while producing more oxygen and more plant material to reintroduce back into the ground. When you mow the lawn, prune trees, pull weeds and trim shrubbery you can take the trapped carbon in this “yard waste” and sequester it by breaking it down into small pieces (use a wood chipper for branches and twigs) and integrating it back into the soil through a deliberate process.
Composting Yard Waste
1.Air, water, nitrogen and carbon are the four essentials for compost. Nitrogen is supplied in the form of organic kitchen waste and green grass clippings. Carbon is just about anything organic that is brown such as pine needles, dry leaves, grass clippings, hay and sawdust as well as shredded paper and cardboard. The ratio of carbon to nitrogen (C:N) should be anywhere from 25:1 to 40:1 — which basically means material that is drier than fresh waste.
2.Choose a space that is approximately a cubic yard in dimension (3x3x3) and that is removed from high traffic pathways and living quarters. To partition off the area, you can use old wooden shipping pallets, hay bales, chicken wire or anything similar you have sitting around.
3.Next, build your compost pile keeping C:N ratios in mind. Be sure to place food scraps beneath pine needles, leaves, dry grass, etc. in order to keep odors down and insects and rodents away. Next, wet the pile and then simply allow worms, microorganisms, bacteria and fungi to break down the material. You can add air by poking the pile with a pitchfork or a rake or by turning it every few days with a shovel. Add a small amount of water every few days to keep the breakdown agents moist, and when you add more to the pile be sure to integrate the new material in with the old.
4.Once your compost is dark brown with an earthy texture, it can be added to your raised beds, placed at the base of trees and shrubs and sprinkled about the lawn. Composting can save you money on fertilizer, generate less waste that needs to be hauled away by a fossil fuel-burning engine and help yield lush plants and trees. Basically, to do your part for the planet, keep the carbon in the yard.
