Bubba Foods: Former executive knew about fraud before murder

JACKSONVILLE, Fla. -- Action News was the first to uncover fraud linked to former Bubba Burgers Vice President of Operations Richard Hollis, who was murdered along a Georgia highway in 2012, two months after he retired.

Hollis' alleged co-conspirator, David Dinsbeer, pleaded guilty Wednesday to pocketing more more than $904,000 by submitting phony invoices to Hickory Foods, the parent company of Bubba Foods, between January 2011 and July 2012, when Hollis left the company.

According to a complaint filed by Bubba Foods in August 2013 against both Dinsbeer and Hollis' estate, the company believes Hollis knowingly paid the phony invoices and pocketed money for himself as well.

The document outlines that Hollis and Dinsbeer met in high school. In early 2011 Dinsbeer set up four phony companies in both his name and the name of his wife, and began submitting invoices for products and services that were never delivered to Hollis who controlled the company's operations. Hollis would approve payment and either sign the checks himself, tell other executives they were legitimate, or forge their signatures. Then, Hollis and Dinsbeer would deposit the money into bank accounts they controlled. Hollis is also accused of selling used Bubba-owned equipment to a company in Nebraska, and deposting $35,000 into the account of a business he set up in his wife's name.

Hollis' widow told Action News she was unaware of the accusations against her husband until after his death. She confirms the case is still in probate court.

David Dinsbeer is out on bond until his sentencing, and refused to answer questions about the complaint Thursday,

Former FBI Agent Dale Carson says this kind of scheme is common, and usually easy to prove, which may be one reason Dinsbeer pleaded guilty.

"There's a paper trial everywhere."

While Dinsbeer is facing decades behind bars, Carson says Hollis can't defend himself, so convincing a judge to order payment from Hollis' estate will be difficult.

"How do you convict a guy who's no longer here? He has a right to answer to the accusations, but the lawyers on that side of the case would be remiss if they didn't file a claim against the estate. Whether or not the judge would agree to pay them out of the estate is another matter entirely."

David Dinsbeer's attorney tells Action News his sentencing has not yet been scheduled. He could face a maximum sentence of 20 years in prison and $250,000 fine for each count.

Glynn County Police Chief Matt Doering tells Action News his department continues to lead the investigation into Hollis' murder. The case went cold recently and detectives have no leads. He was unaware of the FBI fraud investigation until Action News told him. His department is now reviewing the case.

WJAX