Kraft Heinz on Friday agreed to pay $62 million as part of a settlement with the Securities and Exchange Commission (SEC) for improper accounting that led to the restatement of several years of financial reporting.
Former Kraft Chief Operating Officer Eduardo Pelleissone and former Chief Procurement Officer Klaus Hofmann were also charged for their role in the alleged scheme, which took place from the fourth quarter of 2015 through the end of 2018. During that period, “procurement employees negotiated agreements with numerous suppliers to obtain upfront cash payments and discounts in exchange for future commitments to be undertaken by KHC, while improperly documenting the agreements in ways that caused the company to prematurely and improperly recognize the expense savings,” according to the SEC’s order.
