Details after the jump in the extended post…
Kosher hot dog vendor indicted on fraud counts
Zaler falsified orders to woo investors, feds say
By Sara Burnett, Rocky Mountain News
Friday, February 29, 2008Darin McGregor / The Rocky/2006 Zaler's Kosher hot dogs were a fan favorite at Broncos and Rockies games.
But they may not have been as popular as owner Arnold Zaler wanted investors to believe.
A federal grand jury indicted Zaler, 58, on 30 counts of wire, bank and mail fraud this week after an FBI investigation.
The indictment alleges that Zaler falsified orders to sell hot dogs at the Pepsi Center, Invesco Field at Mile High, Coors Field and Super Target grocery stores.
He then used the orders as credit to secure at least $2.2 million in loans from two investment companies and an individual investor, the indictment says.…
Zaler's family started Zaler's Kosher Meats in Denver in 1913. Zaler took over the company a few years ago, operating a meat market and restaurant on South Tamarac Drive near Hampden Avenue and Zaler's Kosher Korners at Invesco Field and Coors Field.
The business made news in late 2006, when a Denver-based kosher-certifying agency pulled certification for the Kosher Korners locations, saying that they did not operate according to kosher standards.
In a fight played out in the Intermountain Jewish News, Zaler blamed the nonprofit agency, ScrollK/Vaad Hakashrus, for the closing of the South Tamarac location. He said he had a "difference of opinion" with the agency and said its staff had acted unfairly - allegations that Scroll K denied.
At the time, Zaler admitted that the restaurant closed "because it proved to be a losing proposition."…
According to the indictment, Zaler began his scheme in October 2005.…
Zaler was issued a summons to appear in U.S. District Court in Denver on March 11 on four counts of wire fraud, two counts of mail fraud and 24 counts of bank fraud.
If convicted, he faces up to 20 years in prison and a fine of up to $250,000 on each count of wire and mail fraud, and up to 30 years in prison and a $1 million fine on each count of bank fraud.