Federal regulators are charging an upstate New York-based regional grocery chain with fraud, claiming a multimillion dollar accounting scheme made the company’s finances look better than they were.
In a complaint filed in federal court, the U.S. Securities and Exchange Commission says the Penn Traffic Co. carried out the accounting fraud over multiple reporting periods and either failed to file or filed inadequate financial reports.
SEC officials say the company prematurely recorded roughly $10 million in operating income.
Penn Traffic agreed to settle the SEC’s charges without admitting or denying the allegations.
Penn Traffic operates or supplies more than 210 supermarkets in New York, Pennsylvania, Vermont and New Hampshire.