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Rite Aid ex-chief gets 8 years
Grass sentenced to 8 years after judge rejects earlier 8-year deal.
May 27, 2004: 2:13 PM EDT
By Krysten Crawford, CNN/Money staff writer

NEW YORK (CNN/Money) - Got to hand it to the criminal justice system. Last month, a federal judge rejected a plea deal calling for Martin Grass, the former chief executive of Rite Aid Corp., to spend up to eight years in prison for his role in a $1.6 billion accounting scandal that rocked the No. 3 U.S. drugstore chain four years ago.

U.S. District Judge Sylvia Rambo thought the deal was too lenient. On Thursday, however, she sent Grass away for 8 years.

A contradiction? Yes and no. William Jeffress Jr., a partner with Baker Botts who defended Grass, said the confusion stems from U.S. sentencing guidelines.

Under a plea deal cut with prosecutors last year, Grass agreed to plead guilty to conspiracy to commit accounting fraud and conspiracy to obstruct justice. Grass also agreed to cooperate with prosecutions of other ex-Rite Aid executives in exchange for a sentence of up to eight years.

The more Grass cooperated, the greater the chance he would serve less time.

In April Rambo signaled her willingness to credit Grass for his assistance but wasn't willing to lop time off of the maximum 8 years called for under the plea deal. Grass then agreed to serve up to 10 years in prison. Rambo arrived at 8 years after crediting him 2 years for his cooperation.

"If [Rambo] had given him two years' credit [under the 8-year deal], his sentence would have been six years," explained Jeffress. "She felt the sentencing guidelines required her to start at a higher point."

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Kim Daniel, the Assistant U.S. Attorney who prosecuted Grass, did not immediately return a call seeking comment. Reuters reported that Thomas Marino, U.S. attorney for the Middle District of Pennsylvania, said Grass, 50, was also sentenced to three years supervised release following his prison term. Grass also agreed to pay $500,000 in fines and forfeit $3 million.  Top of page

-- Reuters contributed to this story.



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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.