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did not exist (the CD scheme). The Information alleged further
that, as part of the CD scheme, Mr. Gherman transferred embezzled
funds to an account in a bank in Antigua, West Indies, that he
had opened under the name of "Chaska Trading, Ltd." (Chaska
Trading), and that approximately $2.2 million of those funds then
were transferred to an account in Chaska Trading's name at
Prudential-Bache Securities, Inc. (Prudential-Bache), and were
available to Mr. Gherman.
Mr. Gherman entered into a plea agreement in which he
admitted embezzling $9.7 million from FIP's clients, including
the removal of $4.4 million in July and August 1988. At his
sentencing hearing, he claimed that the money did not go into his
own pocket, but instead it went into the corporate funds of FIP,
which he controlled, and that the money was used in the
operations of FIP. Of the $4.4 million exit money, $1 million
was unaccounted for at the time of sentencing and was still
unaccounted for at the time of the trial of the instant case.
In accordance with the plea agreement, Mr. Gherman was found
guilty on three counts of mail fraud in violation of 18 U.S.C.
sec. 1341, and four counts of embezzlement from employee pension
funds in violation of 18 U.S.C. sec. 664. On May 10, 1989, he
was sentenced to consecutive sentences totaling 30 years. He
also was ordered to make restitution in the amount of
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