First Rite Aid Executive Sentenced in Accounting Scandal

Former Rite Aid Corp. executive Eric Sorkin became the first of six former top company officials to be sentenced in an accounting scandal at the drug store chain.

Sorkin, 55, was sentenced yesterday to spend five months in jail and five months house arrest, to be followed by two years of probation. He was also ordered to pay a $5,000 fine.

The accounting scandal touched off a stock free fall and resulted in a restatement of earnings for the late 1990s by $1.6 billion, the Associated Press reported.

Sorkin said he planned to "spend the rest of my life trying to earn back the respect" of family, friends and colleagues. He pleaded guilty in June to conspiring to obstruct justice and could have gotten five years in prison, the AP reported.

"I'm not making excuses for what I did. It was wrong," the former vice president for pharmacy purchasing told U.S. District Judge Sylvia H. Rambo.

Three other former executives await sentencing later this week, including Martin L. Grass, former chairman and chief executive of the drug store chain founded by his father. He faces up to 10 years in prison.


Already a member? log in here.

Editor's Choice

Upcoming CPE Webinars

Dec 3The materials discuss the concepts and principles in the AICPA’s new special purpose framework.
Dec 8Kristen Rampe will cover how to diffuse the tension in challenging situations in this one-hour webinar.
Dec 9A key component to improving your firm’s workflow efficiency while enhancing your profitability at the same time is how you leverage emerging technologies.
Dec 16Kristen Rampe will give tips on how to bring confidence into the room and build a valuable network.