NEW YORK -- Two former executives of the original Sloan's Supermarkets chain here will begin jail terms of 27 months on Friday.
nning, both pleaded guilty last fall to a single count of conspiracy in an illegal coupon remittance scheme. In addition to the prison term, each will be required to pay a $40,000 fine.
Jules Rose, chairman and chief executive officer of Sloan's, has not yet been tried on charges of racketeering, money laundering and mail fraud. While his business partners pleaded guilty, Rose pleaded innocent and was scheduled to stand trial.
However, sources in the U.S. attorney's office here were unable to provide additional details on Rose's status.
The successor company to Sloan's, called CMKR Corp., has agreed to a criminal forfeiture of $5 million stemming from charges of racketeering and money laundering.
The original Sloan's chain has been sold to Red Apple Cos. here, which is not affected by any of the judgments.
Charges filed in March 1993 accused the three executives of defrauding manufacturers of nearly $3.5 million through an illegal coupon scheme dating back to 1980, in which they allegedly bought manufacturer coupons in bulk and submitted them to clearinghouses or to manufacturers to secure redemptions for face value.