Prosecutor: Ex-U.S. Foodservice Exec Organized Fraud

Law360, New York (October 13, 2006, 12:00 AM EDT) -- In an opening statement Thursday, a prosecutor accused the former marketing head of Royal Ahold NV’s U.S.-based food distribution unit and others of creating bogus supplier rebates to inflate the unit’s income by hundreds of millions of dollars.

Special Assistant U.S. Attorney Alex Lipman claimed that Mark Kaiser and other executives misled the unit’s auditors and investors over how much U.S. Foodservice Inc. was taking in from supplier rebates, or promotional allowances, in an $800 accounting fraud scheme to reach income targets and receive bonuses....
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