Retirement Dashed for Swindled Printer —Michelson
ALBERT GEHLY, in his mid-70s, and his wife were just beginning to savor the fruits of their hard labor. After founding Bellow Falls, VT-based Vermont Graphics in 1973, the "snow birds" were enjoying his semi-retirement by escaping the cold Vermont winters at their second home in Florida. After all, they knew that their business was in the capable hands of their two children, Craig and Karen, who oversee prepress and production, and estimating/billing, respectively.
But, that all came to a crashing halt in October 2008 when Gehly—trying to determine why his company was losing money—first became suspicious of his part-time bookkeeper, Julie Garrow, who he had hired to balance the books (but not sign checks) 14 years prior. He contacted the FBI which, after a nearly year-long investigation, arrested Garrow for embezzling money from Vermont Graphics during that 14-year time frame. She was charged with stealing $607,739 (Gehly claims it was $711,000) by forging the signature on company checks made out to herself. None of the stolen money has been recovered.
After reaching a pre-trial settlement with prosecutors, Garrow plead guilty on April 28 to forgery and tax evasion. She has agreed to pay restitution of $607,739 to Vermont Graphics, as well as up to $81,000 to the IRS for unpaid taxes. Although the judge has the discretion to determine how much prison time Garrow will actually serve at her sentencing hearing on Sept. 13, Gehly says the U.S. Attorney prosecuting the case has already recommended a 24- to 36-month sentence as part of their plea agreement. Prosecutors also dropped the most serious charge she faced: one count of bank fraud, which carries a maximum $1 million fine and 30 years behind bars. "It seems like the perpetrator has all the (legal) rights," Gehly told me, in describing our justice system where a serious charge can be dropped just to avoid a trial. "She came into work every morning, smiled at everyone, and then proceeded to forge my daughter's signatures."