We use cookies on this site to enable your digital experience. By continuing to use this site, you are agreeing to our cookie policy. close

SEC Targets Third-Party Vendors In Massive Fraud

Law360 (November 3, 2005, 12:00 AM EST) -- A group of third-party vendors illegally aided massive accounting fraud by auditors at wholesale food distributor U.S. Foodservice, according to a federal complaint filed Wednesday by the Securities and Exchange Commission.

The SEC accused seven individuals of complying with illegal requests from auditors at Maryland-based U.S. Foodservice to provide false third-party confirmations of certain financial data. The false responses were then used to inflate the company’s assets by $700 million in 2001 and 2002, according to the SEC.

The suit, which targeted independent food brokers, sales...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.