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SEC sues 3 former ConAgra execs

Rocky Mountain News
January 18, 2007

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The Securities and Exchange Commission has sued three former executives of a ConAgra Foods Inc. subsidiary, alleging they overstated profits in 1999 and 2000.

James Charles Blue, the former president and chief executive of ConAgra Agri Products Cos., Randy Cook, the former president of North American Operations of United Agri Products, and Victor Campbell, UAP's former controller, were named in the lawsuit filed Tuesday in U.S. District Court.

The lawsuit says UAP's inflated financial results were included in ConAgra's consolidated financial statements and were reported within ConAgra's Agricultural Products, one of three business segments operated by ConAgra at the time.

"The defendants' knowing or reckless misconduct caused ConAgra to file with the commission, and release to the public, materially false and misleading financial statements included in its annual reports filed on Forms 10-K for fiscal years 1999 and 2000," the SEC said.

The lawsuit says the company overstated income by $46.7 million in 1999 and $48.5 million in 2000. UAP accounted for about 13 percent of ConAgra's sales, and 9 percent of the company's profits, during those years.

ConAgra said in 2001 that accounting problems at United Agri Products would result in $120 million in lower earnings for 1998 through 2000.

Blue, 68, is a resident of Clifton, Texas. Asked if he had any comment, he said, "I do not. But I appreciate you calling."

Cook, 52, lived in Fort Collins during the period. There was no listing for Cook in Fort Collins.

Campbell, 56, is a Greeley resident. There was no answer at the number listed in his name.

ConAgra spokesman Chris Kircher did not immediately return a call seeking comment.

In 2003, ConAgra Foods Inc. sold its Colorado-based farm supply business to a group led by management and a New York-based investment firm for $600 million in cash and securities.

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