Skip to main content
BBC NEWS / BUSINESS
Graphics VersionBBC Sport Home
News Front Page | Africa | Americas | Asia-Pacific | Europe | Middle East | South Asia | UK | Business | Health | Science & Environment | Technology | Entertainment | Also in the news | Have Your Say |
Business Contents:  Your Money | Economy Companies

Tuesday, 12 December 2006, 06:59 GMT

Sentencing over Foodservice fraud

Ahold store front The ex-chief financial officer at US Foodservice, a unit of Dutch retailer Ahold, has been given three years' probation over an accounting fraud.

Michael Resnick had pleaded guilty in September to one count of conspiracy.

The case stemmed from an inquiry into Ahold's 2003 admission that earnings at the US business had been overstated by more than $800m (£493m).

Prosecutors said Resnick and others manipulated entries in Foodservice's books to help it meet profit targets.

Resnick, who will serve the first half-year of his probation under house arrest, told the Manhattan court: "I approved entries I should not have approved. I said yes when I should have said no."

Up for sale

In November a Manhattan federal jury convicted former US Foodservice marketing executive Mark Kaiser of conspiracy, fraud and making false filings.

He will be sentenced in February, with the maximum possible sanction against him being a life sentence.

The government has also brought criminal charges against 16 of the food-service company's suppliers, with more than two-thirds pleading guilty.

Ahold, which agreed to pay $1.1bn in compensation to investors, will not be prosecuted. It is now looking for a buyer for Columbia, Maryland-based US Foodservice.




E-mail this to a friend
Related to this story:
US competition hits Ahold sales (02 Nov 06 |  Business )
Ex-Ahold bosses guilty of fraud (22 May 06 |  Business )
US Ahold suppliers face charges (14 Jan 05 |  Business )
Ban for former Ahold executives (13 Oct 04 |  Business )
Ahold 'scandal' pair deny charges (28 Jul 04 |  Business )

RELATED INTERNET LINKS
Ahold
US Foodservice
The BBC is not responsible for the content of external internet sites



SEARCH BBC NEWS: 

News Front Page | Africa | Americas | Asia-Pacific | Europe | Middle East | South Asia | UK | Business | Health | Science & Environment | Technology | Entertainment | Also in the news | Have Your Say |
Business Contents:  Your Money | Economy Companies

NewsWatch | Notes | Contact us | About BBC News | Profiles | History

^ Back to top | BBC Sport Home | BBC Homepage | Contact us | Help | ©