Three people associated with the Oklahoma-based Swadley’s Bar-B-Q chain, including the owner, were indicted by a multicounty grand jury on fraud charges over its operation of restaurants at state parks.
According to The Oklahoman newspaper, restaurant owner Brent Swadley and two other company officers were charged with one count of conspiracy to defraud the state and five counts of presenting fraudulent claims to the state. All are felonies.
Oklahoma City-based Swadley’s launched its first restaurant along Route 66 in nearby Bethany, Oklahoma, and operates another location along Route 66 in El Reno, Oklahoma.
The alleged fraud came to light nearly two years ago after reports surfaced of inflated reimbursement invoices submitted to the state’s tourism department. The overcharges were estimated to be as high as $4 million. Swadley’s operated restaurants at six state parks.
The newspaper reported on one aspect of last week’s indictment:
On the smokers, grand jurors alleged an equipment supplier was directed to fabricate an invoice for two used food smokers.
The supplier was then directed to increase the amount by 30%, according to the indictment. The state was then billed for the smokers, with the supplier’s fake invoice attached as support.
The state’s lawsuit alleged “Swadley’s overcharged the Tourism Department for the reimbursement of two new smokers but delivered used smokers of a different model.”
The allegations prompted a probe by the Oklahoma State Bureau of Investigation.
Oklahoma Tourism canceled its restaurant contracts with Swadley, and the agency’s chief, Jerry Winchester, resigned after he also was implicated in the alleged scheme.
Oklahoma Tourism weeks later filed a breach-of-contract lawsuit against Swadley’s, which filed a countersuit that alleged Gov. Kevin Stitt and Lt. Gov. Matt Pinnell knew of the arrangement regarding state park concessions.
(Image of a Swadley’s Bar-B-Q restaurant via its Facebook page)