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Accounting Fraud

Baltimore, MD: (Dec-18-07) Royal Ahold, a Dutch food company, brought charges against former CEO of Columbia-based US Foodservice James Miller, over a billion dollar accounting scandal in 2003 that caused Ahold to pay shareholders more than $1 billion in damages. Sources stated that Miller headed US Foodservice when accounting irregularities surfaced in 2003 and plunged the company into crisis. The scandal prompted the resignations of the company's top two executives, and Ahold was forced to restate profits, undergo major restructuring and pay shareholders damages. Ahold said US Foodservice's profit had been exaggerated by $880 million over three years. More than a dozen vendors were convicted of criminal charges because of the scandal. Miller was not charged. As part of a settlement reached, Miller agreed to pay Ahold $8 million to end all litigation against him. In agreeing to settle, he did not admit any wrongdoing. [BALTIMORE SUN: ACCOUNTING SCANDAL]

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Published on Dec-23-07


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