SEC Targets Third-Party Vendors In Massive Fraud

Law360, New York (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.