Former CEO of Italian Parmalat ordered to stand trial for fraud

Former CEO of Italian Parmalat ordered to stand trial for fraud

[JURIST] An Italian judge ruled Saturday that Calisto Tanzi [profile], founder and CEO of Italian dairy and juice company Parmalat [corporate website], will stand trial in the $18 billion fraud case that caused the company's downfall. Parmalat Finanziaria SpA admitted in 2003 that a $5 billion account with Bank of America was fake, leading investors to lose their savings accounts. The judge also ordered Italian Bank of America [corporate website] executives, Grant Thornton [corporate website], and the company's auditors Deloitte & Touche [corporate website in Italian] to stand trial. Enrico Bondi, appointed by the Italian government as a special administrator covering the Parmalat scandal, has also filed claims against several Italian and international banks. Earlier this week, Morgan Stanley [official website] agreed to settle [JURIST report] with Parmalat by paying $187 million. The trial against Tanzi is expected to start in Milan this September. AP has more.