It's a Family Affair

Talk about sins of the father being visited upon the children. For the past two months, Parmalat founder Calisto Tanzi has been in prison on charges that he drove the Italian dairy giant into a €14 billion hole with a complex web of fraud and deception.

His daughter Francesca and son Stefano expressed shock at what their devoutly religious father was said to have done. Prosecutors painted a different family portrait last week when the two Tanzi children were arrested on charges of fraudulent bankruptcy and criminal association. Prosecutors contend that Calisto Tanzi's two oldest children, each with key posts in the family empire, were well aware of their father's alleged deeds. Investigators claim the younger Tanzis helped divert as much as €400 million into private family accounts to try to salvage the tourism business run by Francesca.

The founder's brother, Giovanni Tanzi, was also arrested last week, along with another four Parmalat officials. Enrico Bondi, a corporate bailout wizard installed by the Italian government, is trying to salvage the company.

A Parmalat spokesman told TIME that a draft company-restructuring plan will be submitted this week. The Parma soccer team, once run by Stefano, is almost certainly destined for the chop.