Business
Ex-U.S. Foodservice executive imprisoned for securities fraud
01:00 AM EDT on Friday, May 18, 2007
NEW YORK — The former chief marketing officer of U.S. Foodservice Inc., a subsidiary of supermarket giant Royal Ahold NV, was sentenced to seven years in prison yesterday for his role in a widespread securities fraud.
Mark Kaiser, 52, of Ellicott City, Md., could have gotten life in prison for crimes that the federal prosecutor called “an astonishing degree of corruption at the highest levels of corporate America.”
“I have learned I made bad decisions and bad mistakes,” Kaiser told the judge. “The past four years have been a suffocating experience. I wouldn’t wish them on my worst enemy, if I had one.”
Netherlands-based Ahold’s U.S. properties include the Stop & Shop and Giant supermarket chains. U.S. Foodservice is one of the country’s largest distributors of food products to restaurants and cafeterias.
Assistant U.S. Attorney Lawrence Gerschwer had asked for a sentence of up to 20 years. Prosecutors had portrayed Kaiser as the creator of a fraud to overstate earnings by $800 million from 2000 to 2003 by reporting fake rebates from suppliers, moves which increased their own bonuses.
Defense lawyer Richard Morvillo asked that his client get no jail time, saying more than a dozen others who had pleaded guilty or admitted roles in the fraud were not sentenced to prison.
Kaiser pleaded for leniency as well, telling U.S. District Judge Thomas P. Griesa he was never “fueled or driven by greed in anything I have ever done.”
The judge said he had to sentence Kaiser to prison because the criminal conduct was serious.
“It was deliberate,” Griesa added. “He had a leadership role and he got other people into trouble.”
| Johnston's Central Landfill: More than just putting trash in a hole in the ground | |
| Tour points to transformation of South Side, Elmwood | |
| Seekonk turkey farm marks 65th anniversary |
|
More business stories
Jobs woes adding to R.I. housing troubles
Most Viewed Yesterday
Politics of religion: Kennedys and the Catholic Church
Lawyers to get $59 million from Station fire settlement
About 150 gather in Warwick for Tea Party’s first open meeting
Most active surveys
Who will win the PC-URI basketball game?
Will you skimp on Thanksgiving dinner this year? If so, where?
Would you trade Clay Buchholz and Casey Kelly for Roy Halladay?
Most e-mailed in the last 24 hours
Reader Reaction










You must be logged in to contribute. Log in | Register Now!
You are logged in as screenname | Log Out
You are logged in, but do not have a "screen" name. Create a Screen Name