MILAN (Reuters) - Italian prosecutors sought a 13-year prison term for the former head of Italian food company Parmalat SpA Monday over its 2003 collapse, one of Europe's biggest financial scandals.
Former Chief Executive Calisto Tanzi is among eight former executives and bankers on trial in Milan for market-rigging or obstructing market oversight. A prosecutor has said that Tanzi was the "hub, who covered up for everyone" in the case.
Prosecutors sought sentences ranging from three years and six months to six years for the other defendants, including three former Bank of America executives.
They also asked for a 300,000 euro ($408,000) fine and confiscation of 600,000 euros from auditor Italaudit, formerly Grant Thornton.
This is the first time that prosecutors in the trial have recommended a jail sentence for Tanzi. A verdict in the case is not expected for several months.
PARMALAT (PLT.IT)buckled in 2003 with a 14 billion euro hole in its accounts. Its demise wiped out the savings of more than 100,000 small investors.
Prosecutors have said the accused misled markets by masking Parmalat's dire finances.
In a statement, Bank of America said the sentences sought for its former employees was "unjustified in light of the investigative hearing."
Eight others accused in the case settled out of court in September.
The main trial over the collapse began in the northern Italian city of Parma, near Parmalat's headquarters, in March.
Parmalat, along with its former executives, auditors and banks, also faces a class-action lawsuit in the United States, among other trials.
Parmalat was restructured and relisted on the Milan bourse in 2005. Italy's biggest listed food company, it has recouped money from banks in settlements.
Shares in Parmalat closed down 5.07 percent at 1.534 euros, in line with the DJ Stoxx food and beverage index.
(Reporting by Milan newsroom, writing by Ian Simpson)
