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NEW YORK - The U.S. Attorney's Office has impaneled a federal grand jury in Detroit and more than 20 subpoenas have been issued for witnesses as part of a probe into bankrupt Kmart Corp., the Detroit News reported on Sunday.
The newspaper reported that federal investigators are zeroing in on the personal finances and compensation deals struck between the Troy, Michigan-based retail giant and former executives such as Chairman Charles Conaway, and President Mark Schwartz, in the months leading up to the company's bankruptcy filing in January.
Investigations on several fronts are seeking to unravel the facts behind the huge retail bankruptcy and to determine if Conaway, Schwartz or others will face charges in connection with the company's meltdown. Both Conaway and Schwartz have been interviewed by the Federal Bureau of Investigation, the newspaper said, citing federal sources.