Parmalat founder faces 10 years in prison

Judges in Milan have sentenced Parmalat founder, Calisto Tanzi, to 10 years
in prison – the first verdict to come out of the court case stemming from the
Italian dairy giant collapse five years ago in what has been touted as Europe’s
biggest corporate failure.

Tanzi is one of eight former executives and bankers on trial in Milan on
allegations of market-rigging, misleading the stock market regulator and
providing false accounting information, The Wall Street Journal

The remaining defendants, including three former Bank of America executives,
were acquitted and the judges rejected Tanzi’s defense strategy, claiming banks
played a key role in Parmalat’s collapse.

Milan prosecutors had demanded 13 years of prison for Tanzi, for his key role
in Parmalat’s collapse, in which thousands of bondholders lost their savings.
Tanzi is also being prosecuted in Parma for fraudulent bankruptcy.

Further reading:

The Wall Street story

Related reading