Former A&P executive pleads guilty to fraud
Former A&P executive pleads guilty to fraud
John R. Moritz, former senior vice president of marketing for The Great Atlantic & Pacific Tea Co., admitted his role in a scheme to defraud A&P by selling for personal gain event tickets that were intended for A&P’s use, U.S. Attorney Paul J. Fishman announced. Moritz fraudulently obtained more than $1.2 million, selling tickets for events that included the 2011 Super Bowl, the 2011 New York Yankees playoffs and Bon Jovi, Lady Gaga and U2 concerts.
Moritz pleaded guilty before U.S. District Judge Kevin McNulty to one count of wire fraud, which carries a maximum potential penalty of 20 years in prison and up to a $250,000 fine. Sentencing is scheduled for July 9, 2014.
From December 2010 through December 2011, Moritz arranged for A&P to purchase thousands of tickets to sporting events, concerts and other shows that were to be used to reward high-performing A&P employees and for other legitimate business purposes; however, he resold more than 7,000 tickets to third parties over the Internet without A&P’s knowledge or consent.
“Following A&P's internal detection and swift notification to federal law enforcement, John Moritz, a former senior executive at A&P, admitted his role in a scheme to purposely defraud the company by redirecting marketing program funds to purchase event tickets and then sell them for personal gain," said Joanne Fischetti, A&P's communications and recruiting manager. "As a matter of record, A&P does not expend funds on entertainment events for employees at any level.
"A&P continues to cooperate fully with prosecutors handling the matter," Fischetti said. "A&P has worked hard to gain the trust of the communities in which it serves, and we are extremely disappointed by the actions of Mr. Moritz. We pride ourselves on being a pillar of honesty, loyalty and reliability, and will not permit the criminal activities of one to cast a pall over the 30,000 terrific associates who work in our stores every day.”