Risk Management

Former Rite Aid CEO Gets Up to 10 Years

Pleads guilty to conspiracy to defraud and conspiracy to obstruct justice, stemming from his role in the drugstore chain's accounting scandal.
Stephen TaubMay 14, 2004

Martin Grass, the former chief executive officer of Rite Aid Corp., agreed to a plea deal with prosecutors that will land him in prison for up to 10 years, according to Reuters. Grass must also pay $500,000 in fines.

Grass pleaded guilty to conspiracy to defraud and conspiracy to obstruct justice stemming from his role in the drugstore chain’s accounting scandal, said the wire service.

Just three weeks ago, U.S. District Judge Sylvia Rambo rejected an eight-year sentence for Grass, deeming it as too short.

Rite Aid was the subject of one of the highest-profile scandals of the late 1990s. Six former Rite Aid executives have been investigated for inflating profits and receiving huge compensation packages.

In October, former vice chairman Franklin Brown was convicted on 10 federal criminal charges, including making false statements to the Securities and Exchange Commission, obstructing justice, and witness tampering.