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 alleged improper purchases.
Federal investigators contacted former Hampton Creek contractors last week to discuss the undercover buyback campaign allegedly conducted by Josh Tetrick'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.
Tetrick, the co-founder and chief executive officer of Hampton Creek, wrote in answer to the investigation: "We have no reason to believe this is true." Peter Carr, a spokesman for the Justice Department, declined to comment.
The Securities and Exchange Commission is scrutinizing whether Hampton Creek improperly recognized revenue from the campaign to buy jars of Just Mayo from supermarkets across the United States, Bloomberg reported last week. The company confirmed the SEC inquiry.
SundayMonday Business on 08/28/2016