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Today’s column offers a review of a clawback fraud; explains that Kraft-Heinz (KHC) reported supplier contracts that made it appear as if expense savings were provided in exchange for past or same-year events performed by the company when, in reality, they were upfront payments in exchange for a future benefit from KHC. This was done in order to improperly recognize costs savings prematurely.


  1. When did the U.S. Securities and Exchange Commission allege that the accounting fraud began at Kraft Heinz?
  2. Approximately how many misleading accounting transactions were recorded during the fraud?
  3. Which division of Kraft Heinz had improperly managed expenses resulting in unrealistic cost savings and inflated profits?


Heller, M. (2021). Kraft Heinz Fined $62M for Accounting Fraud., Sep. 3 (Retrievable online at