Taylor Farms Sues Former Tennessee President Over Alleged $32 Million Fraud Scheme

Taylor Fresh Foods has sued the former president of its Tennessee subsidiary, his wife, a purported contractor and the contractor’s principal, accusing them of diverting more than $32 million through false invoices, unauthorized payroll and personal expense reimbursements.

The lawsuit, filed June 5 in federal court in Nashville, names Brian Thure, Julie Thure, MTS Building and Electrical and James McPherson. Brian Thure led Taylor Farms Tennessee from about 2012 until March 2026 and had broad authority over finance, hiring, vendors, accounting and daily operations, according to the complaint.

Taylor Fresh Foods claims Thure used his position to bypass safeguards meant to separate the approval, review and payment of company expenses. A central part of the lawsuit concerns more than $12 million paid to MTS Building and Electrical.

The company states that MTS and McPherson performed about $400,000 in legitimate construction work in 2022. Later invoices allegedly covered work that was never performed or was unrelated to company operations.

Many of the invoices were kept between $35,000 and $45,000 to avoid added corporate review for transactions above $50,000, the complaint claims. Payments went into personal bank accounts held by McPherson. Accounting workers who questioned the charges were allegedly told to process them without further support.

Taylor Fresh Foods also claims Brian Thure placed relatives and personal workers on the subsidiary’s payroll without corporate approval. Julie Thure, her mother and her sister allegedly cost the business about $3 million in wages, benefits and related expenses.

More than $3 million allegedly went to workers who served the family rather than Taylor Farms Tennessee, including a personal chef and driver. The complaint claims some of the workers received health insurance, retirement contributions, company phones and vehicles through their purported employment.

Brian and Julie Thure are also accused of submitting more than $6.5 million in improper expense reimbursements. Taylor Fresh Foods claims company funds paid for construction at private properties, personal credit card purchases, vehicles, charitable donations and entertainment tickets.

According to the complaint, concerns surfaced during an Internal Revenue Service audit that began in early 2025. A review of vendor tax forms and reimbursement practices led to a wider internal investigation.

Taylor Fresh Foods claims Brian Thure later admitted taking company funds during recorded calls, text messages, and a voicemail to chief executive Bruce Taylor. McPherson allegedly confirmed parts of the MTS payment arrangement.

Corporate officers owe fiduciary duties to the businesses they serve, including a duty of loyalty that generally bars them from using company authority or property for personal gain. Self-dealing may include approving payments to relatives, using corporate assets for private expenses, or arranging transactions in which the officer has a hidden interest.

Taylor Fresh Foods argues that Brian Thure breached those duties by allegedly using his position to conceal payments that benefited him and others. The fraud claims concern expenses and invoices allegedly presented as legitimate. Conversion and unjust enrichment are aimed at recovering money or benefits the company says the four parties wrongfully obtained.

The lawsuit also includes claims under the federal Computer Fraud and Abuse Act and Tennessee’s computer crime law. The federal statute permits civil claims when someone accesses a protected computer without permission or enters parts of a system that were off limits. The Supreme Court has ruled that improper use of information is generally insufficient when the person was authorized to obtain it.

Taylor Fresh Foods bases its federal claim on allegations that Brian Thure arranged a separate internet connection and related equipment outside the company’s managed system. The company claims the setup allowed him to bypass monitoring and audit controls while accessing accounting, vendor and payment records.

The complaint states that Taylor Fresh Foods incurred more than $100,000 in forensic technology investigation, response and remediation costs. Tennessee’s computer law also allows businesses to seek damages for certain fraudulent or unauthorized computer activity.

The food producer is seeking damages, restitution and an accounting, along with court orders to preserve and trace assets allegedly purchased with company money. Taylor Fresh Foods also requests a constructive trust or equitable lien, remedies that can attach a legal claim to property allegedly acquired with misappropriated funds.

Taylor Fresh Foods operates Taylor Farms, a major producer of packaged salads and other fresh foods. Separate from the Tennessee lawsuit, the company is also responding to a multistate Cyclospora outbreak linked by federal health officials to iceberg lettuce sourced from central Mexico. Taylor Farms recalled the lettuce on July 17 and suspended production at its facility in the region. As of August 5, the outbreak included 6,358 illnesses, 278 hospitalizations and two deaths across 15 states.

Brian and Julie Thure have asked the court to pause the lawsuit, citing a parallel federal criminal investigation. MTS and McPherson separately requested a stay. Taylor Fresh Foods opposed both requests and asked for expedited discovery and entry of default against the Thures.

The stay motions and related requests remain pending. A case management conference is scheduled for September 15.