Parmalat was the Italian dairy company that collapsed in 2003 after investigators uncovered a multibillion-euro accounting fraud.
Founded by Calisto Tanzi in 1961, Parmalat expanded from a family business into a multinational food group known especially for long-life milk. The company financed its growth through complex offshore structures and large bond issues, while its published accounts suggested it had substantial cash and assets.
The crisis erupted when Bank of America rejected a document supposedly proving that a Cayman Islands account held €3.95 billion for Parmalat. The document was forged. Investigators then uncovered extensive falsified accounts, hidden debt, and transactions involving offshore entities.
The collapse was one of Europe’s largest corporate scandals. Calisto Tanzi was convicted for his role in the fraud. Parmalat later continued under new ownership, so the scandal should not be confused with the disappearance of the Parmalat brand itself.