Prosecutor blames marketing exec for Ahold fraud
Executive worked for US-based food distribution unit
Mark
Kaiser, a former marketing executive who worked at
Ahold’s US FoodService unit has been accused
of lied about earnings to boost the company’s profit and earn bonuses as part of
the massive fraud that crippled the supermarket group.
Kaiser has been on trial for the last month for alleged conspiracy,
securities fraud and making false filings in role where it is alleged that he
and others created fake promotional allowances owed by suppliers to meet company
profit targets.
Kaiser and U.S. FoodService’s
former
chief financial officer Michael Resnick were charged for their alleged roles
in the fraud in July 2004 by a Manhattan grand jury. Resnick pleaded guilty to a
conspiracy charge on 18 September this year.
US prosecutors also brought criminal charges against 16 of the food-service
company’s suppliers for their role in the fraud that caused US FoodService and
Ahold to overstate earnings by about $800m (£421m) from 2000 to 2003.
More than a dozen have pleaded guilty.
Further reading:
Ahold shareholders seeking £580m
Suspended sentence and fine for Ahold CFO
Ex-Ahold boss defends reputation