SECURITIES AND EXCHANGE COMMISSION
LITIGATION RELEASE NO. 15777 / June 9, 1998
United States v. Robert D. Gersh (United States District Court for the
District of Massachusetts, 97CR10277(RGS), filed October 10/23/97)
The Commission and the United States Attorney for the District of
Massachusetts announced that, on June 9, 1998, Robert D. Gersh ( Gersh
),
of Burlington, Massachusetts, was sentenced by the Hon. Richard D.
Stearns,
United States District Court for the District of Massachusetts, to
serve a
term of 33 months in federal prison, followed by a three-year term of
supervised release. In addition, Judge Stearns ordered Gersh to pay
restitution to defrauded investors. Gersh was also prohibited from
incurring new credit charges or opening new lines of credit unless he
is
current in making restitution payments pursuant to a schedule to be
determined by the U.S. Probation Office. Gersh was ordered to report
to
prison by 12:00 noon on July 7.
On December 22, 1997, Gersh pleaded guilty to ten counts of
Interstate
Transportation of Stolen Property. According to the Information, filed
by
the United States Attorney for the District of Massachusetts on October
23,
1997, Gersh, between January 1990 and July 1995, misappropriated over
$4
million in investor moneys that had been entrusted to two corporations
under his control, Boston Municipal Securities, Inc. ("BMS") and
Devonshire
Escrow and Transfer Corp. ("Devonshire"). Gersh faced a maximum
sentence
of ten years in prison for each count of the Information.
The Information involved essentially the same underlying facts
that
SNIPPETS:
SECURITIES AND EXCHANGE COMMISSION
United States v. Robert D. Gersh (United States District Court for the District of
Richard D. Stearns, United States District Court for the District of Massachusetts, to serve
Judge Stearns ordered Gersh to pay restitution to defrauded investors.
Gersh was also prohibited from incurring new credit charges or opening new lines of credit
Gersh was ordered to report to prison by 12:00 noon on July 7.
filed by the United States Attorney for the District of Massachusetts on October
The Information involved essentially the same underlying facts that were the subject of a
Gersh, acting through BMS and Devonshire, marketed and sold over $14 million of five-year
Under the terms of the COPs, investor money was to be invested in pools of equipment leases
According to the Information, although a large share of the investors' money was initially
According to the Information, Gersh was required either to return the money to investors or
Instead, Gersh used approximately $4 million of the COPs money to finance various business
Judaica book store, several kitchen supply stores, and a model airplane and ship
According to the Information, Gersh covered up his diversion of the COPs funds by using some
plus prejudgment interest thereon, provided, however, that payment of $5,949,185 of such
The Commission also barred Gersh from association with any broker, dealer, municipal
For further information, See Litigation Release Nos.
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