Washington (June 24, 2002) -- The Securities and Exchange Commission filed accounting fraud charges against former senior executives of Rite Aid Corp., alleging that the drug store overstated its income by massive amounts in every quarter from May 1997 to May 1999.
The complaint, filed in federal court in Harrisburg, Penn., charges former chief executive Martin Grass, former chief financial officer Frank Bergonzi and former vice chairman Franklin Brown with conducting a wide-ranging accounting fraud scheme that ultimately forced the company to restate its pre-tax income by $2.3 billion and net income by $1.6 billion, the largest restatement ever recorded, the SEC said Friday.
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