Former executives arraigned on charges

Former Pilgrim’s Pride Corp. (Nasdaq: PPC) CEO Jayson Penn and vice president Roger Austin were re-arraigned Tuesday after the addition of multiple other chicken industry executives to an ongoing inquiry into potential price-fixing within the sector.

Appearing via their counsels in a virtual hearing by the U.S. District Court of Colorado, Penn and Austin were re-arraigned as part of the superseding indictment, allowing them to stay out of jail on their own recognizance and agreeing to similar rules such as surrendering passports and not leaving the U.S. without the court’s permission.

However, an attorney for the federal government said investigators discovered Austin made two phone calls over the summer to someone on a list of potential witnesses.

While Austin’s attorney said the contacts were short social calls to a longtime friend, the violation drew a stern warning from magistrate judge Michael Hegarty.

“The quickest way for you to go from where you’re sitting to a jail cell is for you to violate a court order,” he said.

Penn, Austin and two other chicken industry executives from other companies were indicted by a federal grand jury in June amid a broader U.S. Department of Justice investigation into alleged anticompetitive actions within the sector .

illiam Lovette, who was Penn’s predecessor as CEO, was included in an updated indictment this month, along with Jimmie Little, a former sales executive at Pilgrim’s.

All of the defendants are charged with violating the Sherman Antitrust Act, which carries up to 10 years in prison and a fine of up to $1 million. Prosecutors charged Little with obstruction of justice and making false statements on top of the antitrust charge.

Penn was given a leave of absence earlier this year to focus on his defense but was fired in late September and replaced by former chief financial officer and interim CEO Fabio Sandri.