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Legal News

Florida Duo Sentenced to Prison in Sherman Court for Defrauding Military Exchanges

SHERMAN, TX – Two Florida residents have been sentenced to 30 months in federal prison for their roles in a scheme to defraud the Army and Air Force Exchange Service (AAFES). Gilda Rosenberg, 60, and Amit Biegun, 46, both pleaded guilty to conspiracy to commit wire fraud.

Rosenberg, who was the president of Gilly Vending, and Biegun, its chief financial officer, were found to have underreported sales figures from vending contracts at military installations across the country. AAFES, a self-funded government entity that provides retail services to military members and their families, was defrauded of commission fees based on these sales.

As a result, Rosenberg was also ordered to pay restitution of over $1.6 million. U.S. District Judge Amos L. Mazzant handed down the sentences.

Acting U.S. Attorney Jay R. Combs stated, “By stealing from AAFES, the defendants have stolen from the United States taxpayer and those who served their country with honor and distinction. This sentence sends a strong message that this kind of fraud and abuse will not be tolerated.”

The case was investigated by a number of federal agencies, including the Department of Defense’s Defense Criminal Investigative Service, the Department of the Army Criminal Investigation Division, and the U.S. Air Force Office of Special Investigations. Assistant U.S. Attorney Matthew T. Johnson prosecuted the case.

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