Hampton Creek Faces U.S. Criminal Probe Over Mayo Buybacks
- Startup campaign draws Justice Department fraud investigation
- Maker of Just Mayo confirmed last week SEC also scrutinizing
Justice Dept. Opens Hampton Creek Criminal Investigation
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The U.S. Justice Department has opened a criminal investigation into whether Hampton Creek Inc. committed fraud when it bought its own vegan mayonnaise from stores, according to people familiar with the matter. The food technology startup has already drawn a regulatory inquiry over allegedly improper purchases.
Federal investigators reached out to former Hampton Creek contractors this week to discuss the undercover buyback campaign allegedly conducted by Josh Tetricks’s San Francisco startup, one of the people familiar with the situation said. The criminal investigation is in its early stages, and it’s unclear whether the matter will lead to charges or penalties, another person said.