Kraft Heinz Agrees to Pay $62 Million to Settle a Fraud Case
Kraft Heinz is settling the fraud case with the U.S. Securities and Exchange Commission over the reported inflation of profits, overstated cost savings, and deception of investors.
Kraft Heinz will be paying $62 million to settle and this was announced last weekend. According to the SEC, the Chicago, Illinois headquartered American food company allegedly misrepresented its financial results for years and this violated the federal anti-fraud and record-keeping laws in the country.
CNN Business reported that two of the firm’s former executives – operating and procurement chiefs Eduardo Pelleissone and Klaus Hofmann – will also be penalized and have already agreed to pay a combined sum of $400,000. The two were also charged in the accounting scheme that was uncovered by the SEC.
