SEC Charges 13 with Abetting U.S. Foodservice Fraud Case

The 13 are: Carl Allen, Gary Bell, Donald Childers, John Crowder, Joseph Grendys, Anthony Holohan, Chris Jakubek, John King, Steve LeBarron, Patrick Penderghast, Frank Riggio, Michael Smith and Richard Vecchia.

Allen, Childers, Crowder, Jakubek, King, LeBarron, Penderghast, Riggio and Vecchia settled the charges, agreeing to pay a $25,000 penalty, the SEC said. They agreed to the settlement without admitting or denying the charges.

The SEC said the vendor employees and agents aided the fraud by signing and returning false audit confirmations sent to them by U.S. Foodservice auditors, at the urging of Foodservice personnel. The Commission said it will litigate a contested action against the individuals who did not settle the charges.


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