For the second time in less than two months, an indicted official of defunct compounder Gitto Global Corp. has pleaded guilty to fraud and related federal charges.
Former Gitto Global President Frank Miller entered the plea to conspiracy, wire fraud and bank fraud Nov. 4 in U.S. District Court in Worcester, Mass., according to a Nov. 5 article in the Worcester Telegram & Gazette. Miller faces a maximum prison term of 55 years and fine of $1.5 million.
Miller was released until his Jan. 28 sentencing. The 61-year-old former executive listed Irvine, Calif., as his current place of residence.
On Oct. 1, another former executive, Gary Gitto, pleaded guilty to similar charges. He reached a plea agreement reducing his maximum sentence to 35 years and maximum fine to $750,000.
Miller's plea came without a plea agreement, but Miller's lawyer, Michael Galvin, has spoken with court officials about the potential of [Miller] submitting materials that could be of substantial assistance to prosecutors, according to the T&G story.
Miller, Gitto and four other company executives were indicted in September 2008 after a lengthy investigation of financial crimes that took place at the Lunenburg, Mass.-based firm between 1998 and 2004. In a 2004 bankruptcy filing, Gitto Global said it owed LaSalle Business Credit LLC of Chicago almost $30 million. The T&G story said National Bank of Canada also was owed more than $20 million.
Of the four remaining Gitto Global officials who originally were indicted, William Deakin and Louis Pellegrine Jr. are scheduled for trial Nov. 29. Defendant John Moritz Jr. passed away in 2009.
Charles Gitto Jr., father of Gary Gitto, was dismissed from the case Nov. 3 after U.S. Attorney Carmen Ortiz filed a motion saying that, based on a medical determination, Gitto wasn't able to assist in his own defense.