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The New York Times reports this morning that two former Penn Traffic executives – Leslie Knox, the former chief marketing officer, and Linda Jones, a former vice president – have been charged with fraud in federal court by the US Securities and Exchange Commission (SEC). The indictments stem from an SEC finding that Knox and Jones deliberately chose to prematurely recognize promotional allowances given to the retailer by manufacturers as a way of meeting budget numbers.

Both Knox and Jones were fired by Penn Traffic in February 2006 after their actions came to light during an internal review.
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