Risk Management

Former Ahold CFO Pleads Guilty

Resnick could face up to five years in prison for securities fraud stemming from falsifying entries in the company's books.
Stephen TaubSeptember 19, 2006

The former chief financial officer of U.S. Foodservice Inc, a unit of Royal Ahold NV, pleaded guilty earlier this month for his role in the Dutch retailer’s financial scandal several years ago, according to the Associated Press.

Michael Resnick will face up to five years in prison when he is sentenced on December 12, according to the report. He pled guilty to one conspiracy charge stemming from alleged false entries made in the unit’s books and records, added the wire service. His lawyer;—Benjamin Rosenberg—told the AP that Resnick entered a guilty plea on September 8.

The former CFO had been charged with securities fraud, conspiracy and making a false filing with the Securities and Exchange Commission. Resnick was accused of manipulating reserves and making other false entries in order to meet operating earnings targets for U.S. Foodservice, according to the AP, citing court documents.

Resnick left the company in 2003. He had joined U.S. Foodservice in October 2000 and became CFO in 2001.