September 3, 2021
The
Kraft Heinz Company and two of its former executives will pay
$62 million to resolve charges that between 2015 and 2018 the company falsely reported cost savings, including by recognizing unearned discounts from suppliers and maintaining false and misleading supplier contracts. In 2019, Kraft Heinz restated its financials, correcting a total of $208 million in improperly-recognized cost savings. The SEC alleged that the company did not have effective internal accounting controls in its procurement division, and that former COO
Eduardo Pelleissone and former Chief Procurement Officer
Klaus Hoffman ignored red flags that expenses were not being accurately reported. Pelleissone and Hoffman will pay civil penalties of $300,000 and $100,000, respectively.
SEC