Penn Traffic Discovers Employee Fraud in its Bakery

SYRACUSE, N.Y. - Penn Traffic Co. has said it discovered several days ago that an employee at its Penny Curtiss bakery unit made false accounting entries by overstating inventory, which will cause the company to restate its financial statements for the past three years, Dow Jones news wire reports.

President and CEO Joseph V. Fisher said the company will not feel any significant impact from the financial restatement. The company has already terminated the employee responsible and said it will cooperate with the appropriate authorities on any criminal investigations.