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Last Updated: Tuesday, 12 December 2006, 06:59 GMT
Sentencing over Foodservice fraud
Ahold store front
Ahold has now put US Foodservice up for sale
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.




SEE ALSO
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

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