A Canonsburg man who embezzled nearly $7 million from Hempfield-based Hillandale Farms over more than 13 years is going to federal prison.
Jonathan Weston, 60, was ordered to serve 27 months incarceration when he was sentenced Wednesday before U.S. District Judge W. Scott Hardy.
Weston was indicted May 26, 2021, on charges of fraud conspiracy, filing false income tax returns and conspiracy to commit money laundering.
He pleaded guilty more than a year later.
According to the U.S. attorney’s office, Weston, a former executive at Hillandale, conspired with another employee at Hillandale to embezzle $6.8 million from the company — one of the nation’s top egg producers — from October 2005 to January 2019.
He then laundered the money through various businesses, including candy stores and car washes he owned, and used it to buy collectible cars, real estate and pay family expenses.
In addition, the government alleged that Weston failed to pay $1.2 million in taxes.
As part of his plea agreement, Weston was ordered to forfeit a 2008 Aston Martin convertible, a 1933 Ford Model 40 Coupe and a Downtown condominium, as well as other cash and property.
Advisory sentencing guidelines in the case called for a prison term of 57 to 71 months incarceration.
However, in his sentencing memorandum, Weston asked the court to allow him to remain out of custody — either through supervised release or house arrest — so he could continue to earn money from his car wash business to pay toward restitution.
Weston also noted that he sold off some of his assets — with government permission — to put toward his restitution.
In addition, Weston told the court that he withdrew from the conspiracy before he even knew there was an investigation, and once charged, immediately accepted responsibility for his crimes.
“He has led a quiet life on release for the past four years, focusing on repaying his debt by working hard at a car wash and lawfully helping his three children (and a forthcoming grandchild),” his attorney wrote.
According to that court filing, Weston earned a bachelor’s degree from Pepperdine University in Malibu, Calif. and was hired to serve as controller and vice president of finance at Hillandale Farms in the mid-1990s.
However, the court filing said he quit the position in February 2001.
A short time later, Weston’s attorney wrote, he became the victim of a Ponzi scheme in which he lost $325,000.
According to the filing, Victoria Petrulis, who worked with Weston at Hillandale and had been a longtime friend, approached him in 2005 with a plan to embezzle from the company. Having lost his life savings, Weston agreed to the arrangement, the court document said.
He cited his three young children at the time, acknowledging that he was committing a crime to try to restore the assets he’d already lost.
According to the court filing, Petrulis stole checks intended for the company and sold them to Weston for a cash discount. It amounted to a 2:1 split in favor of Petrulis, the document said.
The two of them stole more than $6 million, though the filing alleges the vast majority of the proceeds went to her.
Weston took umbrage that the required restitution included all of the stolen money even though Petrulis received more than he did.
He asserts he also gave additional money to Petrulis, who died in 2019.
He claimed that he actually received only $2 to $3 million in the scheme.