VENDOR SETTLES SEC CHARGES OF AIDING AND ABETTING VIOLATIONS BY ROYAL AHOLD

FROM: U.S SECURITIES AND EXCHANGE COMMISSION

The Securities and Exchange Commission announced today that the U.S. District Court for the District of Columbia, on March 21, 2013, entered a settled Final Judgment as to defendant Joseph Grendys, in Securities and Exchange Commission v. Joseph Grendys et al., Civil Action No. 07-120 (D.D.C. filed Jan. 18, 2007). The Commission's complaint alleged, among other things, that Grendys aided and abetting violations of the periodic reporting, books and records, and internal controls provisions of the federal securities laws by Royal Ahold (Koninklijke Ahold N.V.), by signing a materially false audit confirmation letter and sending it to the company's independent auditors. At the time, Royal Ahold was the parent company of U.S. Foodservice, Inc. Grendys owns a vendor, Koch Poultry, which supplied U.S. Foodservice with certain products.

The Commission's complaint alleges that Grendys signed the audit confirmation letter only after a U.S. Foodservice executive signed a private side letter that contradicted the audit confirmation letter. The audit confirmation letter was used in connection with the independent auditors' annual audit of the financial statements of U.S. Foodservice.

Without admitting or denying the allegations in the Commission's complaint, Grendys agreed to settle the action against him by consenting to a Final Judgment permanently enjoining him from aiding and abetting violations of Sections 13(a), 13(b)(2)(A), 13(b)(2)(B), and 13(b)(5) of the Securities Exchange Act of 1934 and Exchange Act Rule 13b2-1 and imposing a $25,000 civil penalty. Grendys' three co-defendants settled with the Commission previously.

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.