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Parmalat founder jailed for 10 years

Italian prosecutors had sought a 13-year prison term for Tanzi in this trial in Milan.
 
 
 
Italian prosecutors had sought a 13-year prison term for Tanzi in this trial in Milan. The main trial over the collapse of the diary group began in the northern Italian city of Parma, near Parmalat's headquarters, in March.

Parmalat's collapse was one of Europe's biggest financial scandals and Tanzi was described by a prosecutor as the "hub, who covered up for everyone" in the case.

Prosecutors sought sentences ranging from three years and six months to six years for the other defendants.

Parmalat buckled in 2003 with a 14 billion euro hole in its accounts. Its demise wiped out the savings of more than 100,000 small investors.

Prosecutors have said the accused misled markets by masking Parmalat's dire finances.

In an English-language statement, Bank of America has previously said conviction of its former employees on the charges would be "completely unjustified in light of the evidence which has emerged at trial."

Eight others accused in the case settled out of court in September.

Parmalat was restructured and relisted on the Milan bourse in 2005. Italy's biggest listed food company, it has recouped money from banks in settlements. (Writing by Jo Winterbottom; editing by Simon Jessop)

MILAN (Reuters)
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