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U.S. Securities and Exchange Commission


Litigation Release No. 20592 / May 21, 2008

Accounting and Auditing Enforcement Release No. 2830 / May 21, 2008

Securities and Exchange Commission v. Michael Resnick, et al., Civil Action No. 1:05-CV-01254-CCB (D. Md.)

SEC Settles Fraud Action against Former U.S. Foodservice Chief Financial Officer Michael Resnick

The Securities and Exchange Commission announced today that the Honorable Catherine C. Blake, United States District Judge for the District of Maryland, has entered a final judgment against defendant Michael Resnick. Resnick, who consented to the judgment without admitting or denying the allegations in the Commission's complaint, was the former Chief Financial Officer of U.S. Foodservice (USF). The judgment permanently enjoins Resnick from violating Sections 10(b) and 13(b)(5) of the Securities Exchange Act of 1934 (Exchange Act) and Rules 10b-5 and 13b2-1 thereunder and from aiding and abetting violations of Sections 13(a), 13(b)(2)(A) and 13(b)(2)(B) of the Exchange Act and Rules 12b-20 and 13a-1 thereunder. Resnick was permanently barred from serving as an officer or director of a public company. The judgment also orders Resnick to pay approximately $353,750 in disgorgement and prejudgment interest thereon in the amount of $141,529, but waives payment of all disgorgement and prejudgment interest and does not impose a civil penalty, based on the sworn representations in Resnick's Statement of Financial Condition and other documents and information submitted to the Commission.

The original Complaint was filed on July 27, 2004 in the U.S. District Court for the Southern District of New York. The Commission's Second Amended Complaint, filed on February 16, 2005, alleges that Resnick and others at USF, then a subsidiary of Royal Ahold (Koninklijke Ahold N.V.), participated in a scheme to overstate Royal Ahold's income by $700 million or more in Commission filings and other public announcements for at least fiscal years 2001 and 2002.

The Commission's investigation is continuing. The Commission acknowledges the assistance and cooperation of the Office of the United States Attorney for the Southern District of New York and the New York Office of the Federal Bureau of Investigation.

For further information, see: Litigation Release Nos. 19031 (January 11, 2005) and 18797 (July 27, 2004).



Modified: 05/21/2008