Case Stands Against Vendor In Foodservice Fraud

Law360, New York (September 29, 2008, 12:00 AM EDT) -- A federal judge Monday dealt a blow to the owner of a poultry company accused of helping U.S. Foodservice Inc. carry out a massive fraud scheme, holding that the U.S. Securities and Exchange Commission adequately established jurisdiction and cause of action in the case.

Judge Colleen Kollar-Kotelly of the U.S. District Court for the District of Columbia denied Koch Foods Inc. owner Joseph Grendys’ motion to dismiss allegations that he provided executives of U.S. Foodservice with false audit confirmation letters that they used to grossly overstate...
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