The former chief financial officer of Royal Ahold NV’s U.S. Foodservice Inc. unit will avoid spending time in prison for his role in the Dutch food giant’s massive fraud in 2003. Michael Resnick was sentenced to six months of home detention and three years’ probation, according to the Associated Press.
His lawyer, Andrew J. Levander, told the wire service that no fine was ordered. “I think it’s a fair sentence,” Levander told the AP. “The judge carefully considered all of the issues.”
Resnick left the company in 2003 and the following year was charged with conspiracy, securities fraud, and making a false filing with the Securities and Exchange Commission, according to the report. In September, Resnick pleaded guilty and had faced up to five years in prison. The former CFO was accused of manipulating reserves and making other false entries as a way to meet operating earnings targets for U.S. Foodservice, the AP earlier reported.
Also in September, Michael Garcia, U.S. Attorney for the Southern District of New York announced that Ahold will not face criminal prosecution for the accounting scandal. Under the nonprosecution agreement, Ahold must continue to cooperate with federal law-enforcement officials.