SEC Takes Action Against 13 Vendors in Ahold Case

WASHINGTON -- The Securities and Exchange Commission filed enforcement actions late last week against 13 people alleging they played a role in the a massive financial fraud at U.S. Foodservice, the division of Ahold that admitted in 2003 to overstating its profits by at least $700 million in the preceding two years. The individuals, who worked for U.S. Foodservice suppliers or their agents, were accused of signing false audit confirmations sent to them by the auditors of U.S. Foodservice. The SEC has now filed actions against 30 people in the case. Carl Allen, Donald Childers, John Crowder, Chris Jakubek, John King, Steve LeBarron, Patrick Penderghast, Frank Riggio and Richard Vecchia, settled without admitting or denying guilt and agreed to pay a $25,000 fine. The SEC said it would litigate against the other four: Gary Bell, Joseph Grendys, Anthony Holohan and Michael Smith.