Ex-US Foodservice executives are indicted
The United States Department of Justice and the Securities and Exchange Commission have brought charges against four former executives of Ahold’s subsidiary, US Foodservice. Charges relate to prior-year accounting irregularities at US Foodservice announced in February 2003.
The government alleges that the four former executives engaged in securities laws violations. One of the former officials was also charged with insider trading in securities of US Foodservice before its acquisition by Ahold and making false statements to a government official.
Michael Resnick, former chief financial officer of US Foodservice, and Mark Kaiser, a former marketing official, face charges of fraud, conspiracy, and misleading regulators with financial statements that inflated income of the Columbia MD-based firm.
Timothy J Lee, ex-vice-president for purchasing, pleaded guilty to similar charges July 23, as did executive William F Carter on July 26. Lee also was charged along with Peter O Marion, onetime supplier to US Foodservice, with insider trading in connection with the sale of the food distributor to Ahold. He pleaded guilty to two counts related to informing representatives of food vendors about the merger.
