Thursday, November 9, 2006

Marketing Executive Convicted of Accounting Fraud

Former U.S. Foodservice chief marketing office Mark Kaiser was convicted in New York of securities fraud, conspiracy, and filing false documents with the SEC in connection with an accounting fraud at the company, a subsidiary of Royal Ahold N.V.  Kaiser and a number of senior executives at the company were charged in connection with inflating revenues by recording bogus vendor rebates, totaling approximately $800 million from 2000 to 2003.  The government's chief witness was Timothy Lee, another former U.S. Foodservice executive, and the defense contended that Kaiser was duped by Lee and others, not knowing the rebates were fictitious.  Defense counsel vowed, "We'll do all our talking in the court of appeals."  An AP story (here) discusses the verdict. (ph)

Fraud, Verdict | Permalink

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