A&P Former SVP Sentenced to Jail for Fraud


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Fri. September 5th, 2014 - by Andrew McDaniel

NEWARK, NJ - John R. Moritz, a former SVP of Marketing at The Great Atlantic & Pacific Tea Co. (A&P), has been sentenced to three years in prison.

Fox Business reports that U.S. District Judge Kevin McNulty also ordered Moritz to pay $3.2 million in restitution.

Moritz plead guilty in federal court in March for fraudulently using company funds to buy tickets to high-priced events including the 2011 Super Bowl, Lady Gaga concerts, Yankees playoff games, Broadway shows and more.  The tickets were supposed to be used to reward A&P employees for good work, but instead Moritz allegedly resold more than 7,000 tickets over the internet, pocketing more than $1.2 million.

Moritz admitted in court that he used the money he made from the scheme to make mortgage payments on multiple homes and buy jewelry, airplane flights, hotel stays and groceries.

NJ.com reports that Moritz served as the company’s Senior Vice President of Marketing for only 10 months before he was fired in October 2011 after the company uncovered the fraud and notified federal officials.

The scheme allegedly occurred from 2010 to 2011. This was an especially difficult time for the company financially. In 2010, A&P declared bankruptcy, and emerged from bankruptcy in 2012. In 2011, A&P told workers that the company would not survive without reducing wages. The unions, which represented the workers agreed to 3-6% wage cuts, a 5-year wage freeze, and reductions in vacation and sick time.

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