The Ahold fraud

The Dutch company Ahold has become famous for one of the biggest series of accounting frauds in food retail trade. Though no charges have been filed in connection with the fraud discovered some years ago in their subsidiary, US Foodservice, spectacular growth is over. Creative accounting was used to record revenues and expenses of US Foodservice in 2003, resulting in a surplus of USD 800 million over actual results, which allowed target figures to be met. Though the management of Ahold was investigated, charges had only been filed against 16 leading officers and suppliers of US Foodservice. The contracting of a crisis manager for the company on the brink of bankruptcy for EUR 10 million created such a scandal that customers boycotted the chain.