Who is the CEO of Blue Bell ice cream

All charges against the former chief executive of Blue Bell Creameries were dismissed Wednesday by U.S. District Judge Robert Pitman.

The felony charges were dismissed after a motion hearing conducted by telephone because Pitman agreed the federal District Court lacks subject matter jurisdiction.

Who is the CEO of Blue Bell ice cream
Kruse, who was free on a $50,000 signature bond, was charged on May 1 of seven felony counts involving actions he took in the 2015 outbreak of deadly Listeria strain associated with Blue Bell facilities and products.  He was to have gone to trial in August.

However, his defense team of Chris Flood and John Cline successfully argued that the U.S. District Court for Western Texas lacks subject matter jurisdiction over the felony charges because the Department of Justice (DOJ) did not obtain a Grand Jury indictment or a waiver by Kruse of his right to such an indictment.   Instead, he was charged with an information filing that he did not accept.

The Western District did not have a Grand Jury empaneled because of the COVID-19 crisis.

Kruse, who retired three years ago after a long tenure as Blue Bell’s CEO, had pleaded not guilty to one count of conspiracy and six counts of wire fraud.

The DOJ is in somewhat of a bind because the five-year statute of limitations is running out on 2015 actions Kruse took in dealing with the outbreak that resulted in three deaths among ten illnesses in four states.

The dismissal does not change the corporate guilty plea entered by Blue Bell on May 1 to two misdemeanor charges that the company shipped contaminated ice cream across state lines during the 2015 outbreak. Blue Bell agreed to pay $19.35 million, the second-highest monetary penalty in history for food safety violations.

Kruse, now a free man, was looking upon conviction at up to 20 years in prison and a $250,000 fine for each of the seven felonies he faced.

Jurors could not agree on a verdict earlier this week in a federal criminal case against the former CEO of Blue Bell Creameries regarding his role in the company's 2015 listeriosis outbreak, resulting in a mistrial.

Paul Kruse, the chief executive for the Brenham-based ice cream maker at the time of the deadly outbreak, had been indicted in 2020 on seven counts of wire fraud and conspiracy. Prosecutors accused him of trying to conceal the presence of listeria bacteria in Blue Bell products both in directives to employees and in communications with customers such as hospitals, school districts and military installations, and also of delaying a recall of potentially contaminated frozen treats after the company was informed by Texas health officials that listeria had been discovered in some of its products.

One of the counts of wire fraud was dismissed in early August, federal court records show, and jurors could not reach a consensus regarding the other charges against Kruse.

"After deliberating for four days, the jurors advised the court that they were hopelessly deadlocked," U.S. District Judge Robert Pitman wrote in his mistrial order.

The U.S. Department of Justice can ask for a new trial in the case, but it is unclear if prosecutors will do so. The justice department declined to comment.

Kruse's Houston-based defense attorney, Chris Flood, said Thursday he did not know how the justice department planned to proceed. He added that 10 of the 12 jurors were in favor of a not guilty verdict and said he hoped the justice department would take that into consideration.

"It's clear that the jury believed and the evidence suggested that Blue Bell, including Mr. Kruse, were all just trying to do the best they could with the information they had at the time," Flood said. "When certain things developed, decisions were made, but they were always made to protect the consumers and never to cheat the consumers."

Contaminated Blue Bell products were linked to the deaths of three hospital patients in Kansas, according to the Centers of Disease Control and Prevention. There were a total of 10 listeriosis cases in four states, with the others being in Arizona, Oklahoma and Texas.

Blue Bell, a popular creamery in the southern U.S. that was founded in 1907, ended up recalling 8 million gallons of ice cream and temporarily stopping production in 2015. The company pleaded guilty in 2020 to two misdemeanor counts of distributing adulterated ice cream products and agreed to pay more than $19 million in fines, forfeitures and civil settlement payments, according to the justice department, which said at the time that it was the "second largest-ever amount paid in resolution of a food-safety matter."

Ricky Dickson has led the Blue Bell company since 2017.

"We understand that the jury was unable to reach a unanimous verdict (in Kruse's case), and the government will make a decision on its next steps," Blue Bell said in a statement. "Blue Bell has learned from this difficult chapter in our company's history, and food safety will continue to be our highest priority."

What happened to the CEO of Blue Bell?

Former Blue Bell Creameries CEO Paul Kruse's trial for charges related to what investigators say was a cover up of a deadly listeria outbreak ended in a mistrial on Monday. The U.S. Justice Department declined to comment on the lack of verdict or whether the case would be retried.

Who owns Blue Bell ice cream?

The company's corporate headquarters are located at the "Little Creamery" in Brenham, Texas. Since 1919, it has been in the hands of the Kruse family. As of 2015, Blue Bell was the #2 selling ice cream manufacturer in the United States.

Who founded Blue Bell?

A group of local businessmen in Brenham, Texas, decided to establish the Brenham Creamery Company and make butter from excess cream brought in by area farmers. A few years later, the creamery began making ice cream and delivering it to neighbors by horse and wagon.

What is going on with Blue Bell ice cream?

In 2020, Blue Bell Creameries pleaded guilty to two misdemeanor counts of distributing adulterated ice cream products and paid a criminal fine and forfeiture amount totaling US$17.25m, with additional US$2.1m to resolve civil False Claims Act allegations.