Ex-chief of FDA to plead guilty in conflict of interest case
This is an archived article that was published on sltrib.com in 2006, and information in the article may be outdated. It is provided only for personal research purposes and may not be reprinted.

WASHINGTON - Former FDA chief Lester Crawford has agreed to plead guilty to charges of failing to disclose a financial interest in PepsiCo Inc. and other firms regulated by his agency, his lawyer said Monday.

The Justice Department accused the former head of the Food and Drug Administration in court papers of falsely reporting that he had sold stock in companies when he continued holding shares in the firms governed by FDA rules.

Court papers say Crawford chaired the Food and Drug Administration's Obesity Working Group while he and his wife owned shares worth at least $62,000 in soft drink and snack food manufacturer Pepsico Inc. In addition, the documents say, he held stock worth at least $78,000 in food product manufacturer Sysco Corp.

While he and his wife owned the stock, the panel Crawford chaired met with representatives of the packaged food industry and gave congressional testimony encouraging manufacturers to relabel serving sizes to give calorie counts greater prominence.

Crawford ''is going to plead guilty to two misdemeanors [today] and he is going to admit his financial disclosures had errors and omissions, mostly with his wife's continued ownership of stocks,'' said Crawford's lawyer, Barbara Van Gelder.

Accused of making a false writing and conflict of interest, Crawford was scheduled to appear before a federal magistrate this afternoon. Each charge carries a maximum penalty of one year in prison.

The papers say Crawford failed to disclose his income from exercising stock options in Embrex Inc., an agriculture biotechnology company that has been regulated by the FDA. Crawford had been a member of Embrex's board of directors, according to federal filings.

Crawford, a veterinarian, abruptly resigned from the FDA in September 2005 but gave no reason for his departure. He had held the top position for just two months but had been acting head of the agency for more than a year.

Charges say the official reported he had sold stock in companies, but actually still held shares
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