Elizabeth Murray

Free Press Staff Writer

Federal authorities are investigating whether a former Cabot Creamery employee committed what could be one of the Vermontiest crimes ever: stealing parts from a major Vermont cheese company to make maple syrup manufacturing machines.

Orleans resident Randall Swartz is suspected of buying parts on the Cabot's dime and using them in a side business, Kingdom RO's, where he made and sold reverse osmosis machines, according to a search warrant filed in U.S. District Court in Burlington.

The search warrant was unsealed in late April after investigators with the FBI searched in Swartz's home in early March. Swartz had worked as a maintenance manager at Cabot.

No criminal complaint or indictment has been filed in federal court as of Thursday. An inventory from the search has been filed with the court.

Doug DiMento, a spokesperson for Agri-Mark Cooperative, said Swartz was fired in February, but he declined to provide the specific reason. Agri-Mark Cooperative owns Cabot Creamery. Swartz had worked for Cabot for about 20 years, according to a LinkedIn page outlining his professional experience.

"We uncovered information which we thought should be shared with Vermont State Police, which we did," DiMento said Thursday. He declined to be more specific about the information due to the ongoing investigation. DiMento said he also could not comment on the current state of the investigation, saying, "We've heard very little" from investigators.

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Attempts to reach Swartz at his home in Orleans were unsuccessful Thursday. His lawyer, Rick Goldsborough, also declined to comment on the case via email.

"I understand there is an ongoing investigation but I do not have specifics of any allegations and can't comment beyond that," Goldsborough wroteThursday evening.

Vermont State Police Capt. Dan Trudeau referred comments on the case to the FBI. A media representative from the FBI Albany Office, which oversees the FBI in Burlington, declined to comment on whether an investigation existed.

Assistant U.S. Attorney Paul van de Graaff also said that he couldn't provide information about the future of the case.

An affidavit written by FBI Special Agent Patrick Hanna and filed with the search warrant shows that several Cabot employees reported suspicions about Swartz's conduct in January. They also reported that Swartz may have directed several Cabot employees to do work for his personal company while on the clock for Cabot, sometimes at Swartz's home. One employee told investigators that Swartz may have been diverting parts since approximately 2010.

A LinkedIn page for Swartz shows that he has been the founder and engineer of Kingdom RO's since January 2011.

Hanna wrote that Cabot employees told investigators that Swartz has built at least eight reverse osmosis machines paid for by Cabot without the company's knowledge since 2010. They said Swartz sold many of the machines to local farmers for about $20,000 each.

In one case, Swartz sold a reverse osmosis machine to Cabot for about $19,600. One employee said the machine was made from the stolen parts, Hanna wrote.

A Cabot-issued cell phone used by Swartz for work purposes was unlocked and searched by Cabot. Photos of completed reverse osmosis machines in Swartz's garage were found on the phone, Hanna wrote in the affidavit.

Agri-Mark spokesperson Dimento said Thursday after being contacted by a Burlington Free Press reporter was the first time he had heard of any paperwork being filed in the case.

"It's an unfortunate incident, and we'll see where the legal road leads," he said.

Contact Elizabeth Murray at 651-4835 or emurray@freepressmedia.com. Follow her on Twitter at @LizMurrayBFP.