Former Parmalat execs seek plea bargaining

MILAN - Nine former Parmalat executives, including three chief financial officers, asked a Milan judge on Tuesday to plea bargain, seeking reduced sentences of up to two-and-a-half years for their roles in the accounting scandal.

Judicial sources said the executives included the former CFOs Fausto Tonna, Alberto Ferraris and Luciano Del Soldato, as well as the brother and the son of Parmalat's founder Calisto Tanzi, internal auditors and board members.

The judge is due to decide over the next few months whether or not to approve the requests which have already been agreed with prosecutors leading the fraud investigation.

All nine men were accused by prosecutors of market-rigging, which carries a basic jail sentence of up to 5 years, as well as hindering the work of regulators.

Milan prosecutors have been investigating suspected market-rigging and other financial crimes since the sprawling food group nearly collapsed in late 2003.

Since then two auditors have been sent to trial. A further 27 people and three financial institutions are in a preliminary phase of their hearings. That number would be whittled down if Judge Cesare Tacconi approves the plea-bargaining requests.

Prosecutors in Parma, where Parmalat is based, are conducting a separate probe focused on fraud within the company.

Most of the executives accused by Milan prosecutors are also under investigation in Parma.

The next hearing in Milan is set for April 19.

- REUTERS