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Timothy Lee and William Carter, two former executives at Ahold-owned US Foodservice, have settled civil fraud charges that had been brought against them by the US Securities and Exchange Commission (SEC).

The settlement, which will have the two men paying fines of more than $300,000, permits the men who avoid admitting guilt or wrongdoing. The settlement also reportedly includes US Foodservice as a company, but the firm was not fined.

Lee and Carter – as well as two other executives, Mark Kaiser and Michael Resnick – were charged with artificially inflate profits by booking nonexistent rebates. Kaiser and Resnick were not included in the deal, and could each face up to 20 years in prison if convicted of criminal charges of securities fraud; they also are facing a civil suit in the matter.
KC's View:
We actually feel bad for all the good people of integrity who work for Ahold, who have to deal with the fact that sometimes this seems like the story that will not die. However, that is the cold reality, because in certain areas of the company, it seems like there were a number of people for whom greed and avarice was second nature.