Grass Gets Eight Years In Rite Aid Fraud Case

By George Anderson


Martin Grass, the former chief executive of Rite Aid, was sentenced to eight years in jail for defrauding the drugstore chain and its shareholders and then seeking to obstruct the legal investigation into the accounting scandal.


In addition to jail time, Mr. Grass was fined $500,000 and put on three years probation.


Assistant U.S. Attorney Kim Douglas Daniel said Mr. Grass “deceived and misled thousands of individual and institutional investors and creditors.”


Mr. Grass expressed regret to U.S. District Judge Sylvia Rambo for his actions. While the former chief of Rite Aid acknowledged the illegality of his actions, he said, “I did not do them to line my own pockets.”


Moderator’s Comment: Will the sentence handed down against Martin Grass and others in the Rite Aid accounting scandal
reduce the chances of this type of thing happening again?


We have to admit getting angrier as we read this story.


It’s beyond our ability to understand how someone who essentially stole billions of dollars from individuals and companies would get off with only eight
years in jail, a few years probation and paying a fine of half a million dollars as punishment for his crime.


Laws need to be passed to make the time fit million and billion dollar crimes being carried out by other corner office criminals who aren’t looking to line
their own pockets either.

George Anderson – Moderator

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