Indictments sought in Parmalat scandal

Milan, Italy, prosecutors investigating the international dairy group Parmalat have asked for the indictment of 29 people and three financial institutions, including the group's founder, Calisto Tanzi.

Italian news reports said prosecutors sought trial on charges of market rigging, false communications by auditors, and interference with Consob, Italy's stock market watchdog.

The Parmalat scandal erupted in December 2003, when the group admitted that it didn't have almost $5 billion it said was in a Bank of America account. Parmalat soon entered into bankruptcy protection, and key company officials, including Tanzi, were placed under arrest. Tanzi remains under house arrest at his home near Parma, Italy.

According to an audit, Parmalat's debt is about $18 billion.

TAGS: Foodservice
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