Taylor Farms says the former president of its Tennessee operation used company payroll, vendor invoices, reimbursements and credit cards to divert more than $32 million for himself, his family and others.
The federal civil lawsuit names Brian Thure, his wife, Julie Thure, purported contractor MTS Building and Electrical, and its principal, James McPherson. Thure led Taylor Farms Tennessee from approximately 2012 until March 2026 and controlled its finances, hiring, vendors, accounting and daily operations.
The complaint says company money paid for personal workers including a chef, chauffeur, trainer and aquarium-maintenance attendant. Taylor Farms also connects the disputed funds to a $5.5 million Hawaii home, a 400-acre California ranch and approximately $1 million used for a UC Berkeley football endowment.
According to Law Commentary, the case began after an IRS audit raised concerns about vendor payments and reimbursement practices. The allegations remain unresolved in a pending civil lawsuit. The court has not found that any defendant is liable for the claimed losses.
More Than $12 Million Went Through a Purported Contractor
A central part of the lawsuit involves MTS Building and Electrical, which Taylor Farms describes as an entity that was not registered with Tennessee and operated through bank accounts belonging to McPherson.
The company acknowledges that MTS and McPherson performed approximately $400,000 in legitimate construction work in 2022. It alleges that the relationship later changed, with Thure submitting invoices for work that was either never completed or had not been performed by MTS.
Most of the disputed invoices were structured between $35,000 and $45,000, according to the federal complaint. Taylor Farms says that kept them below the $50,000 threshold that would have triggered greater corporate scrutiny. Thure allegedly approved the MTS invoices himself and directed accounting employees to process them outside the normal purchase-order system.
The complaint says employees processed questionable invoices because they feared losing their jobs if they refused. Taylor Farms claims it paid more than $12 million to MTS. The receiving bank account was held in McPherson’s name, first at Wilson Bank and Trust and later at Pinnacle Financial Partners.
The complaint says McPherson contacted company representatives in March 2026 and confirmed activity involving MTS. It also alleges that he acknowledged the Pinnacle account was his personal account and had been used to pay for Thure family projects.
Family Members and Personal Workers Appeared on Company Payroll
Taylor Farms says Thure placed his wife, mother-in-law and sister-in-law on the Tennessee subsidiary’s payroll without corporate authorization. Julie Thure allegedly remained on the payroll from March 2013 through March 2026 at a total cost of approximately $774,900.
The complaint says she was listed as an events coordinator but was excluded from compensation and bonus records submitted to Taylor Farms CEO Bruce Taylor for review. Her mother received approximately $1.1 million in wages and benefits.
Taylor Farms acknowledges that she performed some accounting work before retiring around 2020 but alleges that she continued receiving paychecks and benefits afterward. Julie Thure’s sister allegedly received more than $1 million between 2017 and March 2026 despite performing no legitimate services for Taylor Farms Tennessee.
Another group of workers allegedly provided personal services to the Thure family while receiving company salaries and benefits. The list included a chef, chauffeur, handyman, personal trainer, pool-maintenance worker and aquarium-maintenance attendant. Taylor Farms says those workers and other allegedly unauthorized employees cost the company more than $3 million.
Expense Reports and Credit Cards Paid for Personal Purchases
The lawsuit separately accuses Brian and Julie Thure of submitting more than $6.5 million in improper reimbursement requests. Brian Thure allegedly submitted more than $4 million, while his wife accounted for approximately $2.5 million.
Taylor Farms claims he approved his own reimbursement requests and also approved his wife’s expenses despite her not being an authorized employee. Nearly $2 million in reimbursement requests came during the final two years of the alleged scheme. The company connects that increase to growing expenses after the couple purchased the Hawaii home and California ranch.
Taylor Farms also says company vendors performed nearly $3 million in personal construction and remodeling work while billing the projects as work for its facilities. Those projects allegedly included remodeling two lake houses and a personal residence, installing a commercial kitchen for Julie Thure’s bakery and shipping equipment and construction vehicles to develop the California ranch.
The complaint says vendors were directed to use descriptions that concealed the true locations and purposes of the work. Contractors who resisted were allegedly told that refusing personal projects could jeopardize their ability to continue working for Taylor Farms Tennessee.
Corporate credit cards created another route for spending, the lawsuit says. Taylor Farms attributes more than $3 million in personal charges to two cards held in the names of a former company controller and former information technology manager.
The disputed purchases included expenses for Julie Thure’s bakery and a $15,000 golf cart for the Hawaii property. The company alleges that Thure instructed the former IT manager not to retain receipts and directed other employees to approve the expense reports.
The Lawsuit Connects the Money to Homes, Vehicles and an Endowment
Taylor Farms says approximately $1 million was directed toward the “Brian and Julie Thure Right Tackle Endowment” at UC Berkeley, where Brian Thure played college football. A university announcement about the endowment was later removed, according to the complaint. The current status of the gift has not been publicly confirmed.
The lawsuit also identifies a Hawaii home purchased for approximately $5.5 million in October 2024. Julie Thure reportedly offered use of the property to Middle Tennessee Christian School for fundraising purposes. Another $1.5 million allegedly went toward purchasing and beginning development of a 400-acre ranch in Humboldt County, California.
The disputed personal vehicle purchases exceeded $250,000 and included at least one vehicle valued at approximately $160,000, according to the complaint.
An IRS Audit Triggered the Internal Investigation
Taylor Farms says the alleged scheme surfaced during an IRS audit that began in early 2025 and covered the fiscal year ending in June 2023. An IRS agent requested Form 1099 records from the company’s operating businesses. The review raised concerns involving MTS and other reimbursement practices at the Tennessee subsidiary, prompting a broader internal investigation.
The complaint says Thure admitted taking company funds during a recorded telephone conversation with corporate representatives on March 16, 2026. Taylor Farms also alleges that he provided personal financial records showing assets and obligations connected to disputed company funds. On April 8, he allegedly left a voicemail for CEO Bruce Taylor apologizing for fraudulent misconduct and later made additional admissions in text messages.
The Defendants Asked to Pause the Civil Case
Brian and Julie Thure have asked the court to stay the lawsuit, citing what their attorneys described as a parallel federal criminal investigation involving the same underlying conduct. MTS and McPherson filed a separate request for a stay. Taylor Farms opposed both motions and sought expedited discovery and entry of default against the defendants.
The civil case was filed June 5 in the U.S. District Court for the Middle District of Tennessee. Taylor Farms asserts claims including fraud, fraudulent concealment, civil conspiracy, conversion, unjust enrichment, breach of fiduciary duty and violations of federal and Tennessee computer laws.
The company is seeking more than $32 million in damages, restitution, recovery or tracing of disputed assets, punitive damages and other relief. The stay requests and related motions remained pending, with an initial case-management conference scheduled for September 15.
Businesses Can Reduce the Risk of Insider Financial Fraud
No single executive or employee should control the creation of vendors, approval of invoices, release of payments, payroll changes and reimbursement reviews. Dividing those responsibilities makes it more difficult for one person to create a transaction and approve it without independent scrutiny.
Businesses should verify a new vendor’s registration, tax identification number, physical address and bank-account ownership before sending money. Invoice reviews should include purchase orders, contracts, proof that the work was completed and confirmation from someone independent of the person requesting payment.
The Association of Certified Fraud Examiners identifies segregation of duties, management review, independent audits, fraud training and confidential reporting systems among the controls businesses can use to prevent or detect occupational fraud.