Judge approves Ralphs plea bargain

The Compton-based supermarket chain entered guilty pleas to five federal counts, including conspiracy, identity fraud and falsifying and concealing information to the Internal Revenue Service and Social Security Administration. Earlier, a federal indictment charged Ralphs on 53 counts. The case stems from Ralphs illegally hiring back locked-out union workers during the 2003-04 labor dispute. In addition to the guilty pleas, Ralphs agrees to pay $70 million in fines and restitution and will be placed on three years probation.

Before signing off on the plea deal, which Ralphs agreed to in July, U.S. District Judge Percy Anderson allowed officials from the United Food and Commercial Workers union, along with Ralphs workers, a chance to address the court. Most of the 10 or so who came forward urged that the plea agreement be approved. But Michael Ward, who says he has worked at Ralphs for 20 years, said that the agreement "is neither fair or equitable." Ward put it this way: "If you burn down my $250,000 home, you owe me $250,000, not $5,000."

The agreement calls for Ralphs to cooperate with government investigators in the ongoing case, which is now expected to focus on individuals at the company who might have been engaged in the wrongdoing. Anderson said the case sends out a message to corporations that "crimes have serious personal consequences." He also said it is his understanding that "a number" of executives are targets of the investigation. Kroger Co., Ralphs parent, has said that the lawbreaking involved only low-level managers and not senior executives at Ralphs. Sentencing is scheduled for Nov. 1.