Chocolate factory treasurer: 'There is no scam'

Investor accuses Ivory Coast group of misusing millions of dollars.

Tuesday, October 09, 2007

By Charles McChesney and Catie O'Toole

Staff writers

The two top officials of New York Chocolate denied reports that they embezzled funds that were meant to get the former Nestle factory in Fulton back in the chocolate business.

"There is no scandal. There is no scam," said Yalle Agbre, the company's treasurer. He and New York Chocolate CEO Jean-Claude Amon said at a Monday news conference that a minority partner in the company is spreading false rumors.

Reports published in opposition newspapers in the Ivory Coast claim that millions of dollars meant for the Fulton factory disappeared after being transferred from an Ivorian cocoa-growing cooperative to IC Trading, a company in Georgia.

Formed in 2004, after the 2003 shutdown of the Nestle factory in Fulton, New York Chocolate had 80 employees and reported production was growing near in January 2006. Five months later, the factory was down to a dozen workers and having trouble paying utility bills.

Amon and Agbre said Hausmann A. Banet, CEO of Lion Capital Management Group, an investment company with offices in Detroit and San Francisco, is the source of the reports.

Banet, reached by phone, said Amon's Pompey home was purchased with money meant for New York Chocolate. "We didn't give him approval. He wasted money of the company."

But Amon and Agbre said that Banet owns just 20 percent of New York Chocolate, and shared photocopies of a Delaware court decision showing that.

They also shared photocopies of a California court decision that ordered Banet - for whom the court lists five aliases - to pay New York Chocolate more than $600,000 in damages. That, said Yalle, came because Banet kept a New York state tax refund that should have gone to the Fulton operation.

Banet said that the cocoa-growing co-op, the Fonds de Regulation et de Controle Cafe Cacao or FRC, had sent $35.9 million for the factory, but that it ended up with IC Trading in Georgia.

The money did go to IC trading, Agbre said, and then on to pay for chocolate-making equipment. IC Trading was used because New York Chocolate had not yet been formed, he said.

The FRC chose his company to make the purchase over Lion Capital, Agbre said. He held up a folder and said it was "proof of transfers that were made."

Banet said he had contacted the U.S. government and written to the World Bank about the situation. He said the U.S. Department of State is investigating.

Amon said Banet had been a consultant who had been paid more than $200,000 for his services, including filing incorporation documents. Banet was paid for everything, Amon said.

"Even the wire transfer fee of $10," said Agbre.

Amon said he and members of New York Chocolate's board of directors have met with Banet in Chicago and New York City. Banet has asked for $36 million for his share of the company.

Agbre said that was far too much. The board put the company's total value at $25 million in 2005, after the company had purchased chocolate making equipment and the former Nestle plant.

L. Michael Treadwell, executive director of Operation Oswego County, the region's economic development agency, said New York Chocolate was current on its bills to the Industrial Development Authority.

He said his agency was involved in a legal dispute with Lion Capital over the co-generation plant next to the chocolate factory.

Amon said the accusations were ridiculous in view of the way international money transfers are scrutinized since the Sept. 11, 2001 terror attacks. And, he said, if someone had embezzled millions of dollars, wouldn't he run away?

Amon took issue with a report that said he was paid $300,000 a month. He held up a pay stub that he said showed his pay was much lower than that. Asked how much he made, Amon paused and said, "way, way, way lower - even below average for a CEO in Central New York."

Amon demanded a correction and apology from the Fulton-based Valley News, which ran a front-page story about the controversy that included Amon's photograph with the line, "At the center of the alleged scam."

"My integrity, my personal honor, is put at jeopardy by this information," Amon said referring to the story.

He said he was concerned for his four children, who attend school in the area. "I don't want my children to be ashamed of their father."

Contact Charles McChesney at cmcchesney@syracuse.com and Catie O'Toole at cotoole@syracuse.com

Accusations of money laundering at Fulton chocolate plant

10/8/2007 8:36 PM
By: Web Staff

FULTON, N.Y. -- Money laundering and fraud are the accusations brought against New York Chocolate and Confections, the Ivory Coast company that owns what was formerly the Nestle Chocolate plant in Fulton.

An article published by Fulton's Valley News, cites French media reports which allege that the company's CEO, Jean-Claude Amon, managed another company called "IC Trading," which he used to channel money through New York Chocolate. Amon held a press conference Monday afternoon claiming that facts were not properly checked and that those French media reports were inaccurate. He says tax returns filed in the state of New York are proof of his compliance with the law. The reports also claim Amon receives a paycheck of $300,000 a month. He would not give the exact amount, but said his salary is, quoting here, "Way, way, way lower than that." Amon vehemently denies involvement with the company IC Trading and money laundering activities.

Hoping for chocolate production in Fulton

Hoping for chocolate production in Fulton
10/9/2007 6:13 PM
By: Nneka Nwosu

FULTON, N.Y.--New York Chocolate and Confections denies accusations of money laundering, but has not said when production will begin at the Fulton factory. Despite a lack of production, the city is still hopefull.

"Nestle was part of the city of Fulton. You could smell chocolate every Saturday at noon when the steam whistle went off," said Fulton Mayor Daryl Hayden.

Before he was the mayor, Hayden worked at Nestle's for 35 years. He even has a table of old products outside his office. Hayden left before the company moved production to Brazil in 2003.

The following year, New York Chocolate and Confections moved in. But after three years, financial troubles, and now accusations of money laundering, there is still no chocolate.

"You read things you don't know what to believe, what not to believe. Hopefully they're not true," said Hayden.

At a press conference Monday, New York Chocolate officials called the rumors false. An article published in Fulton's Valley News sites French media reports that millions of dollars meant for the fulton factory mysteriously disappeared. The reports say the money was laundered through a company secretly owned by the New York Chocolate CEO. Officials say the rumors are a result of investor disputes.

Yalle Agbre, the treasure of NY Chocolate and Confections, said, "There is no shady business going on."

But, despite the rumors and lack of production, the mayor believes fulton will once again smell like chocolate."

"We all have hope, you know," said Hayden. "After a hundred years of Nestle's we want to smell the roasters roasting again."

Even if those roasters belong to a completely new company sometime down the road.

NY Chocolate Officials ‘Bitter’ About Embezzlement Allegations

FULTON, NY -New York Chocolate and Confections Company officials vehemently deny they’re part of a scheme to launder millions of dollars from the Ivory Coast.

News started to circulate around the Ivory Coast this past month after Dr. Ousmann-A. Gbane, principal and CIO of Lion Capital Management, gave an interview about the alleged improprieties to Radio France Internationale (RFI). Lion Capital is a 20 percent shareholder in New York Chocolate and Confections Company (NY3C).

From California Monday, Gbane said that the details center around allegations that approximately $35.9 million of investor funds never made it to the local plant.

“The money was sent from the Ivory Coast but never reached the plant,” Gbane said.

Instead, Gbane said that the bulk of the funding was transferred to an account in Georgia that was tied to another company, I.C. Trading.

Gbane said while wire transfer receipts from the bank came with both company names, he stressed that I.C. Trading was not affiliated with New York Chocolate.

“New York Chocolate never had an account in Georgia,” he said.

“I don’t know who was involved,” Gbane added. He stressed, however, that a substantial amount of money is unaccounted for to date.

Had that money arrived, Gbane said that the company would be flourishing. Gbane said that the investigation has reached to the president of the Ivory Coast, the state department, the treasury department and the European Union.

“We have sufficient documents to show there was money laundering,” Gbane added.

Top officials at the plant denied the allegations during a press conference Monday. (Editor’s note: Fulton Daily News was not notified about the press conference.)

According to other media reports, Jean-Claude Amon told those gathered that the minority partner in the company is spreading false rumors.

Paul Bankes Jr., NY3C’s Philadelphia-based attorney with the firm Whiteman, Bankes & Chebot LLC, also said that the allegations coming forward are false.

Bankes stressed that he and Yalle Agbre, the company’s treasurer, are able to account for all of the money that has come in to the United States for the chocolate plant.

Bankes started to receive and distribute the money for NY3C approximately two years ago.

“I make sure that all of the benefits due to the employees are paid first,” he said. From there, Bankes said that bills, taxes and debts are taken care of with those funds. He noted that as the manager of the account, he also receives a fee for his services that are taken from that money.

“Wire transfers were made,” Bankes said. “(The money) was paid out to the company’s benefit.”

Bankes said, too, that the company’s money problems are not the result of embezzlement; rather, he said the concerns are more the result of substantial bills to keep the plant going with no income, in addition to a line of litigation between NY3C and Lion Capital.

When he first got involved, Bankes said that there were “issues” over ownership of the company. The FRC subsequently started a lawsuit in Delaware against Lion Capital to determine ownership. The case was resolved around the beginning of 2007 when the judge decided to uphold Coffee and Cocoa Regulation Funds’ (FRC‘s) 80 percent share in the company and Lion Capital’s 20 percent share.

“He wouldn’t get into the debate,” Bankes said. “He ruled that he would treat the parties as they had treated themselves.”

Bankes said that NY3C sued Lion Capital again in a California-based suit after it discovered that a $565,000 Empire Zone tax refund that was due to NY3C was sent to and deposited by Lion Capital.

“We didn’t receive it,” Bankes said. “They said they mailed it to Lion Capital. … We demanded that the money be returned to New York Chocolate. They had no authority to expend that money.”

On Sept 13, Bankes said the judge in that case ruled for NY3C again and ordered Lion Capital to reimburse the company $606,000.

“In the order, the judge says the defendant’s actions were willful, tactical, egregious and inexcusable,” Bankes said.

To date, Bankes said Lion Capital still has not returned or accounted for the money.

“I can show what I have received and spent on the company’s behalf,” he said. “The only money I can’t account for (since he started managing the company’s expenses) is the money that Lion Capital received.”

Litigation, Bad Publicity Has Been ‘Damaging’ To NY Chocolate, Attorney Says”

by Nicole Reome on 10 Oct 2007 at 7:57 am

FULTON, NY - While the fate of the New York Chocolate and Confections Company is still unclear, officials involved in the project say that one thing is crystal clear.

According to Paul Bankes Jr., the company’s Philadelphia-based attorney, continued bad publicity and a line of litigation are not making it any easier to guarantee chocolate will ever come from the plant.

Dr. Ousmann-A. Gbane, principal and CIO of Lion Capital Management, recently came forward with allegations of money laundering and embezzlement against those in control of the plant. Lion Capital is a 20 percent shareholder in New York Chocolate and Confections Company (NY3C). Coffee and Cocoa Regulation Funds (FRC) holds and 80 percent share of the company.

Gbane charges that $35.9 million in investor funding never made it to the Fulton plant. He accused those in control of sending the bulk of that money through a different business, IC Trading, in Georgia and said that mismanagement and frivolous spending has dwindled down funds that should have been used for production.

From his office Monday, Bankes defended the company and explained that he and the company treasurer, Yalle Agbre, are able to account for all of the money that has come to the United States and used for the company‘s benefit.

He pointed out, however, that a fractured relationship with Lion Capital is the source of many of the problems that the company faces today.

According to the attorney, the source of those problems date back to the early days of the project. Meeting more in court than face-to-face, Bankes said that NY3C spends a great deal of money and time in court battles with the minority shareholder.

Bankes explained that the account set up under IC Trading was created to receive wire transfers for NY3C, rather than using an account in Michigan that is owned by Lion Capital.

“When the company was incorporated in October 2003, there no bank account was formed,” Bankes said. “The money for the (project) was sent first to a Lion Capital account in Michigan. … Later, the funds were sent to IC (Trading) for the benefit of New York Chocolate. Yalle can account for all of that money.”

In early 2004, Bankes said an account was established at Key Bank in Fulton and the company funds were sent there. Those practices continued until Bankes was retained almost two years ago.

In that time, however, Bankes pointed out that NY3C has been involved in several lawsuits with Lion Capital for matters such as ownership rights and a tax reimbursement from the Empire Zone that he says Lion Capital received and used unlawfully.

Bankes said that NY3C sued Lion Capital in a California-based suit this past year after it discovered that a $565,000 Empire Zone tax refund that was due to NY3C was sent to and deposited by Lion Capital. Though a judge ruled in NY3C’s favor this past month, Bankes said that Lion Capital has not returned or accounted for the money.

“The litigation in Delaware and California has cost the company dearly,” Bankes said. “It has cost a lot of money and a lot of time. … (The company was) also deprived of the use of money that it needs until we can sort this out.”

During a press conference at the plant Monday, company CEO Jean-Claude Amon declined to answer questions about when production would start at the plant.

That same day, Bankes pointed out that those in control have not decided yet if it ever will.

“The decision has not been made yet if this (project) will go forward,” Bankes said.

Bankes pointed out that the company has been struggling to keep the plant in operation in lieu of an income from products. He noted, too, that the money required to bring the plant up to par and start production is substantial.

“We are struggling along, paying bills and hoping to sort this out,” Bankes said. He pointed out that is no easy task when faced with continuous litigation and negative publicity.

“The money spent just in litigation has been enormous,” he said.

In the two years that Bankes has been involved with the company, he said that the publicity from those lawsuits has been damaging.

“We have not been able to attract investors,” he said, noting that money holders are hesitant to get involved with a project that is routinely in court.

“Gbane has cost us,” Bankes said.

“He has been very clever in his litigation… and keeping his own expenses to a minimum,” Bankes added.

He noted that Lion Capital offered once to sell its shares of the project to the FRC.

“He made the offer for a laughable amount,” Bankes said, noting that the company would not even entertain the price tag Gbane put on the offer.

As for accusations of mismanagement of funding, Bankes noted that Lion Capital has its own questions to answer.

“(Gbane) received three or four wire transfers in Michigan,” he noted. “Despite several requests to know how he spent that money, that has not been accounted for either.”

New York Chocolate CEO denies overseas allegations

New York Chocolate CEO denies overseas allegations
Ownership dispute cited as motivation for misinformation
by Andrew Henderson
October 10, 2007

In a hastily arranged news conference Monday afternoon, New York Chocolate & Confections Company CEO Jean Claude Amon denied allegations of financial impropriety as widely reported by members of the overseas media, including newspapers in the Ivory Coast and France.

New York Chocolate 'not dead' yet

County IDA: New York Chocolate 'not dead' yet
by Carol Thompson

January 27, 2007

Home of New York Chocolate- New York Chocolate & Confections Company is still planning to produce chocolate in the former Nestle facility in Fulton, pictured here, according to members of the Oswego County Industrial Development Agency. The IDA will continue to work with company officials in anticipation of getting the business off the ground. - Valley News photo by Andrew Henderson

Although New York Chocolate & Confections Company has not generated much news lately, or chocolate for that matter, two members of the Oswego County Industrial Development Agency said recently that there is still hope the company will eventually go into production at the former Nestle factory in Fulton.

IDA board members Morris Sorbello and Art Ospelt said in a recent interview that New York Chocolate should not be counted out yet.

"They are still trying," Ospelt said.

Sorbello said that the company had a rough start because of a civil war in the Ivory Coast. "All the players we were working with have changed," Sorbello noted.

In May of 2003, Nestle corporate officials closed their Fulton plant and transferred production to Brazil. Nestle had been producing chocolate locally for more than 100 years when the plant closed.

After Nestle left Fulton, two companies, New York Chocolate and The Fulton Chocolate Company, purchased the assets and sought to produce chocolate in Fulton. New York Chocolate, backed by a consortium of cocoa-bean growers from the Ivory Coast, purchased the building and most of the equipment.

In July of 2004, New York Chocolate purchased the assets of The Fulton Chocolate Company to become the sole owner and operator of the plant.

New York Chocolate would be the African cocoa-bean growers' first chocolateproducing plant. Farmers in the Ivory Coast produce 40 percent of the world's share of cocoa beans, but have never had a facility of their own to produce chocolate.

In 2005, New York Chocolate began producing dark chocolate but had to cease operations. It had also began making cocoa butter, cocoa powder, chocolate liquor, and crispy rice.

Sorbello said that when Fulton Chocolate went into the former Nestles building "they did nothing" and New York Chocolate had to buy them out.

Ospelt said there are people from the United States in there now working to get the plant in operation.

The IDA board members said that Jean- Claude Amon, of the African country, is still involved in the process, but that the company needed the leadership of someone from the United States who better understands domestic business operations. Differences in business culture had apparently hindered progress at the plant.

"They needed somebody from the United States to be a chief executive officer," Sorbello said.

Amon continues to be involved but Sorbello said the company needed someone who better understood the production end of the business. Both credited Amon for dealing positively with the cultural gap needed to be filled. They said Amon may have been overwhelmed by all of the regulations required in the states.

"They were really in overdrive," Sorbello said. He added that in the beginning the company started with the wrong type of attorneys and that it is now getting on the right track with the assistance of agencies such as the IDA.

"They've got people from this area in there now helping set up," said Sorbello.

"They didn't know how to operate in this country," Ospelt said. "I don't want this taken the wrong way, but they work slower."

Environmental studies needed to be done and should have been done when Nestle was present in the facility, Sorbello said.

New York Chocolate received $250,000 in assistance and has repaid their debt, Sorbello said.

"It's not dead," Opselt said.

The IDA will continue to work with company officials in anticipation of getting the factory back into production.

International scandal reaches Fulton

International scandal reaches Fulton
French media: Chocolate plant part of alleged money laundering scam
by Carol Thompson & Andrew Henderson
October 6, 2007

If news reports circulating throughout France are correct, chocolate won't be coming off the production line at the former Nestle plant in Fulton any time soon. Allegations have surfaced that the Ivory Coast company New York Chocolate & Confections, which took over the plant in 2004, was nothing more than part of an international money-laundering scheme.

City receives payments from New York Chocolate

City receives payments from New York Chocolate
by Andrew Henderson

May 13, 2006

Calling it a good sign for the future of chocolate production in the former Nestle plant, Fulton Mayor Daryl Hayden received two checks this week from New York Chocolate and Confections Company officials to cover delinquent amounts owed by the Ivory Coast company to the city.

Mayor Hayden visited the chocolate company Tuesday and left with a check in the amount of more than $170,000 to cover what the company owed for water-andsewer services. The city has since restored water service to the plant.

The mayor also received a check Thursday morning for more than $450,000 to cover what the company owed in county, city, and school taxes.

"They are all paid up," Mayor Hayden declared. "They said they would pay up and they did."

In late March, a delegation of government officials from the Ivory Coast traveled to Fulton to tour the plant and address the company's debt. Because of the company's outstanding debt to National Grid and to the city, natural gas and water services were shut off. The company owed a substantial amount of money to the Oswego County Industrial Development Agency, as well.

With the bills being paid, production of chocolate might begin if the Ivory Coast government sees fit to invest more money into the Fulton plant. New York Chocolate CEO Jean-Claude Amon said in March that the company is poised to launch chocolate production immediately, but there had been a delay in funding from the African company because of a change in trade and agricultural regulations as a result of governmental transition.

"I talked to the plant manager and he said that it looked like they will be investing more money to run the plant," Mayor Hayden noted.

In May of 2003, Nestle corporate officials closed their Fulton plant and transferred production to Brazil. Nestle had been producing chocolate locally for more than 100 years when the plant closed.

After Nestle left Fulton, two companies, New York Chocolate and The Fulton Chocolate Company, purchased the assets and sought to produce chocolate in Fulton. New York Chocolate, backed by a consortium of cocoa-bean growers from the Ivory Coast, purchased the building and most of the equipment.

In July of 2004, New York Chocolate purchased the assets of The Fulton Chocolate Company to become the sole owner and operator of the plant.

New York Chocolate would be the African cocoa-bean growers' first chocolate producing plant. Farmers in the Ivory Coast produce 40 percent of the world's share of cocoa beans, but have never had a facility of their own to produce chocolate.

Officials cautiously optimistic about chocolate plant

Officials cautiously optimistic about chocolate plant
by Andrew Henderson

March 15, 2006

National Grid has turned off the gas to the New York Chocolate & Confections plant in Fulton, but city and county officials remain cautiously optimistic that chocolate will eventually be produced at the former Nestle plant.

Because of outstanding debt to National Grid, the power company shut off natural gas to the plant last week. The chocolate company also owes a substantial amount of money to the Oswego County Industrial Development Agency as well to the City of Fulton.

Even with the surmounting debt and the suspension of utilities, New York Chocolate CEO Jean-Claude Amon said he is still expecting funding from the company's investors in the Ivory Coast. New York Chocolate is poised to launch chocolate production immediately, he said, but there has been a delay in funding from the African country.

According to Amon, trade and agricultural regulations have changed as a result of governmental transition in the Ivory Coast, which has had a direct impact on operations at the New York Chocolate plant.

Amon noted that the company does not plan to leave Fulton or close for good. He said that the Cocoa Board, which is comprised of cocoa-bean growers in the Ivory Coast, recently stressed the commitment of the shareholders to solve the financial situation of New York Chocolate.

The shareholders, Amon said, have funded $26 million to operate the plant and keep the 75 workers on the payroll. There are no plans for layoffs or for terminating employment contracts, he added.

"On the other hand, we urgently need this funding to purchase product and address the arrears we've incurred due to this delay before we are able to begin production," Amon said. "We are very close to a permanent solution and expect funds to be transferred in short order.

"We are committed to meeting our longterm goals of bringing full-fledged chocolate production back to Fulton," Amon stressed.

Fulton Mayor Daryl Hayden said Monday morning that the city was expecting to turn off the water.

"There are three-fourths copper lines going into the factory," said Mayor Hayden, who worked at the plant for Nestle for more than 30 years. "It's supposed to be back down in the low 30s and 18 at night. We want to protect ourselves. If we are ever going to take that factory back, I would rather not have the water lines let loose in there."

New York Chocolate owes the city more than $500,000 in taxes. " They are assessed at $10 million and so it is around $52 per $1,000 if you add all three (city, county, and school tax rates). That comes out to more than $500,000 right there alone. Then, they owe money for water," the mayor said.

He also expressed hope that the company does receive the money to pay off its debt. "Before I was worried; I'm more than worried this time," he said. "My gut feeling is that this could be the end of New York Chocolate, but I hope I am wrong. Chocolate production in Fulton is a part of our history. Chocolate has always been in the City of Fulton since the early 1900s."

Oswego County Legislature Chairman Russ Johnson said he has been watching closely the events unfold at New York Chocolate.

"I've been there with many other local, state, and federal representatives as we have seen high times through public announcements of impending major production, with hundreds of local employees projected to make it happen, to the few scary times when we have seen the company near the brink of closure," Johnson said.

"One thing that remains constant, however, is that New York Chocolate's CEO Jean-Claude Amon is determined to make the air in Fulton smell sweet again," he added.

"He strikes me as a courageous man with a huge heart-one who will not rest until the company and community succeed. That is precisely what we need in Fulton and Oswego County, and we must continue to do whatever we possibly can in government to help New York Chocolate achieve its goals."

New York Chocolate also owes Operation Oswego County and the Oswego County IDA $850,000 for a loan the chocolate company received to purchase equipment.

"As for the IDA loan, it's still too early to predict failure for the company," Johnson said. "We must remain steadfast in believing that there is a realistic chance for New York Chocolate to make it through the tough incubation stage, and reach significant production that will capture a portion of the global market. In that regard, we will do what is necessary to protect our collateral interests, but we must remain cognizant that New York Chocolate does not want to leave this community, nor does it wish to forego the millions of dollars that it has already invested into the business thus far."

According to Johnson, the survival and success of New York Chocolate are essential to the Fulton community.

"In a time when manufacturing jobs are nationally becoming a thing of the past, there is the distinct possibility that our community can reverse that trend," said Johnson. "We see Huhtamaki continue to grow in size and staffing levels, Birds Eye Foods is strong, and Spear USA remains committed to success. This proves that our city and county can support growth in manufacturing, unlike most other areas in the country. We are ripe for growth, and with powerful teamwork from all levels of government, we help make that happen."

All eyes on chocolate plant

All eyes on chocolate plant
by Andrew Henderson

Members of the Fulton community most likely watched with interest Wednesday as a delegation from the Ivory Coast met with local and state officials to discuss the financial crisis surrounding the New York Chocolate & Confections Company.

They might not be the only ones.

Fulton Mayor Daryl Hayden and Operation Oswego County Executive Director L. Michael Treadwell have both publicly noted within the past few weeks that other companies are carefully watching the situation unfold at the former Nestle plant.

"We did have groups that were interested in it before New York Chocolate got it," Mayor Hayden said earlier this week of the former Nestle facility. "I can't say that I haven't talked with some of them. Are there any commitments to the mayor? Not actual commitments, but there are people interested in what's going on."

When asked what type of companies might be interested in the plant, Mayor Hayden responded, "Other chocolate and food companies-that's all I can tell you."

Earlier this week, government officials from the Ivory Coast traveled to Fulton to tour the plant and address the company's debt. The delegation is expected to provide a report to the prime minister of the Ivory Coast, who will make the decision whether to continue to invest in the Fulton plant.

"There were two different groups that came to town from the Ivory Coast," said Mayor Hayden. "We don't know more than we did when we went in."

Because of outstanding debt to National Grid, the power company shut off natural gas to the plant earlier this month. The chocolate company also owes a substantial amount of money to the Oswego County Industrial Development Agency as well to the City of Fulton.

Even with the mounting debt and the suspension of utility services, New York Chocolate CEO Jean-Claude Amon said in a statement earlier this month that he is expecting funding from the company's investors in the Ivory Coast.

New York Chocolate is poised to launch chocolate production immediately, he said, but there has been a delay in funding from the African country because trade and agricultural regulations have changed as a result of governmental transition in the African country.

This past Monday, the company laid off 50 hourly workers as funding from the Ivory Coast failed to arrive. "I feel sorry for them," said Mayor Hayden, who worked at the plant for more than 30 years for Nestle. "I hope that these people who came to invest pay their money and get it running again. I feel sorry for anyone who doesn't have a job."

In May of 2003, Nestle corporate officials closed their Fulton plant and transferred production to Brazil in South America. Nestle had been producing chocolate locally for more than 100 years when the plant closed.

After Nestle pulled out, two companies- taking the names "New York Chocolate" and "The Fulton Chocolate Company"- purchased the assets and set on a course to produce chocolate in Fulton. New York Chocolate, backed by an Ivory Coast consortium of cocoa-bean growers, purchased the building and most of the equipment. The Fulton Chocolate Company had planned to lease approximately 250,000 square feet of the plant to produce low-carbohydrate and private label candy bars.

In July of 2004, however, New York Chocolate purchased the assets of The Fulton Chocolate Company to become the sole owner and operator of the plant. New York Chocolate would be the African cocoa bean growers' first chocolate-producing plant. Farmers in the Ivory Coast produce about 40 percent of the world's share of cocoa beans, but have never had a facility to produce chocolate.

So far, the shareholders have funded $26 million to operate the plant, but the company reportedly owes $2 million in unpaid bills.

"I hope that they see fit to invest more money to keep the factory running," said Mayor Hayden. "If for some reason that they don't, I hope that there is somebody out there who can make some kind of deal to make chocolate in the City of Fulton and supply jobs. If something happens, the door is open."

All eyes on chocolate plant

All eyes on chocolate plant
by Andrew Henderson

Members of the Fulton community most likely watched with interest Wednesday as a delegation from the Ivory Coast met with local and state officials to discuss the financial crisis surrounding the New York Chocolate & Confections Company.

They might not be the only ones.

Fulton Mayor Daryl Hayden and Operation Oswego County Executive Director L. Michael Treadwell have both publicly noted within the past few weeks that other companies are carefully watching the situation unfold at the former Nestle plant.

"We did have groups that were interested in it before New York Chocolate got it," Mayor Hayden said earlier this week of the former Nestle facility. "I can't say that I haven't talked with some of them. Are there any commitments to the mayor? Not actual commitments, but there are people interested in what's going on."

When asked what type of companies might be interested in the plant, Mayor Hayden responded, "Other chocolate and food companies-that's all I can tell you."

Earlier this week, government officials from the Ivory Coast traveled to Fulton to tour the plant and address the company's debt. The delegation is expected to provide a report to the prime minister of the Ivory Coast, who will make the decision whether to continue to invest in the Fulton plant.

"There were two different groups that came to town from the Ivory Coast," said Mayor Hayden. "We don't know more than we did when we went in."

Because of outstanding debt to National Grid, the power company shut off natural gas to the plant earlier this month. The chocolate company also owes a substantial amount of money to the Oswego County Industrial Development Agency as well to the City of Fulton.

Even with the mounting debt and the suspension of utility services, New York Chocolate CEO Jean-Claude Amon said in a statement earlier this month that he is expecting funding from the company's investors in the Ivory Coast.

New York Chocolate is poised to launch chocolate production immediately, he said, but there has been a delay in funding from the African country because trade and agricultural regulations have changed as a result of governmental transition in the African country.

This past Monday, the company laid off 50 hourly workers as funding from the Ivory Coast failed to arrive. "I feel sorry for them," said Mayor Hayden, who worked at the plant for more than 30 years for Nestle. "I hope that these people who came to invest pay their money and get it running again. I feel sorry for anyone who doesn't have a job."

In May of 2003, Nestle corporate officials closed their Fulton plant and transferred production to Brazil in South America. Nestle had been producing chocolate locally for more than 100 years when the plant closed.

After Nestle pulled out, two companies- taking the names "New York Chocolate" and "The Fulton Chocolate Company"- purchased the assets and set on a course to produce chocolate in Fulton. New York Chocolate, backed by an Ivory Coast consortium of cocoa-bean growers, purchased the building and most of the equipment. The Fulton Chocolate Company had planned to lease approximately 250,000 square feet of the plant to produce low-carbohydrate and private label candy bars.

In July of 2004, however, New York Chocolate purchased the assets of The Fulton Chocolate Company to become the sole owner and operator of the plant. New York Chocolate would be the African cocoa bean growers' first chocolate-producing plant. Farmers in the Ivory Coast produce about 40 percent of the world's share of cocoa beans, but have never had a facility to produce chocolate.

So far, the shareholders have funded $26 million to operate the plant, but the company reportedly owes $2 million in unpaid bills.

"I hope that they see fit to invest more money to keep the factory running," said Mayor Hayden. "If for some reason that they don't, I hope that there is somebody out there who can make some kind of deal to make chocolate in the City of Fulton and supply jobs. If something happens, the door is open."