The jailed founder and previous chief government of the unsuccessful Italian food stuff giant Parmalat, Calisto Tanzi, sits in his yard at his home around Parma, northern Italy, September 27, 2004. REUTERS/Daniele La Monaca

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ROME, Jan 1 (Reuters) – Businessman Calisto Tanzi, who transformed a modest family milk firm into the multi-nationwide meals powerhouse Parmalat only to see it collapse in 1 of Italy’s largest fraudulent bankruptcies, died on Saturday, aged 83.

Tanzi died of pneumonia in a healthcare facility in Parma, the city in central Italy exactly where he had built his fortune, his family said.

Parmalat collapsed in 2003 when a 14 billion euro gap was uncovered in its stability sheet, wiping out the discounts of hundreds of compact investors in a personal bankruptcy that also reverberated throughout the worlds of banking, sport, tourism and amusement.

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The business was found to have overstated its gains and profits for many years and the collapse sparked litigation around the world versus dozens of banking companies.

Tanzi underwent a series of trials together with other corporation executives and distinguished Italian bankers. He was convicted of marketplace-rigging, fraudulent individual bankruptcy and other rates and sentenced to numerous jail conditions.

Born in 1938 in the modest town of Collecchio, when he was 22 he took more than his grandfather’s community milk company. Much more than four decades later the Parmalat group experienced about 130 factories all around the world earning milk, yogurt, and other food stuff solutions.

His business galaxy also involved a very first division soccer club, a tourism firm and a television network. It also sponsored ski and Components A single auto racing groups.

The Parmalat disaster erupted in 2003 when the enterprise claimed a 4 billion euro financial institution account held by a Cayman Islands device did not exist, forcing administration to request personal bankruptcy protection and triggering a criminal fraud probe.

In spite of the firm’s expenditure-quality rating at the time, issues experienced formerly swirled over its failure to demonstrate why it did not use income demonstrated on its stability sheet to cut financial debt.

Authorities later on observed that Tanzi experienced concealed art treasures by masters this sort of as Pablo Picasso, Claude Monet and Vincent van Gogh in friends’ properties. The art was auctioned off in 2019.

(This story fixes spelling of 1st name, Calisto not Callisto)

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Reporting by Philip Pullella
Enhancing by Gareth Jones

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