FORMER GRAND UNION VP'S WIFE SENTENCED

MARTIN SCHNEIDER

NEWARK, N.J. -- Diane Vaillancourt, the wife of Donald C. Vaillancourt, former longtime executive with the now-defunct Grand Union Co., Wayne, N.J., last week was sentenced to four months in prison by the U.S. District Court judge here after being found guilty of the charge of misprison of a felon.

As previously reported, Donald Vaillancourt was sentenced to three years in prison for embezzlement on April 11.

Gail Hansen, assistant to presiding Judge Alfred Wolin, said Diane Vaillancourt was also sentenced to one year of supervised release, and must provide full financial disclosure during that time.

Along with her husband, she has been ordered to pay restitution in the amount of $2.56 million to Florham Park, N.J.-based Chubb Insurance, the firm covering Grand Union.

The details of Donald Vaillancourt's sentence, as reported, include an additional three years of supervised release after serving his sentence. Hansen also said that as part of his sentence, Vaillancourt is not permitted to hold any position of fiduciary responsibility for the three years after serving his jail time. He will also have to provide full disclosure of his financial situation to the U.S. Attorney's Office, Hansen said.

"The Vaillancourts' attorneys are working out a payment system where he will be able to make payments towards the $2.56 million owed through his pension funds while incarcerated," Hansen said. "However they decide to pay, they cannot pay less than $500 per month."

Donald Vaillancourt, a former attorney, worked for Grand Union from 1971 through February 2000, when he was laid off as part of a reduction in the firm's workforce. His last position with the company was corporate vice president for public affairs, corporate counsel and secretary.

As previously reported, Vaillancourt admitted in court proceedings that he had the authority to approve invoices submitted to Grand Union for goods and services. The executive said he created three companies, and between 1983 and 1999 submitted invoices from these companies for services that were never performed.

In April 2000, following a tip from an undisclosed source, he was arrested by special agents of the FBI, and a search of his house revealed airline tickets to Rio de Janeiro, $56,000 in cash, seven fur coats and eight registered pistols and rifles, according to the U.S. Attorney's office.

Vaillancourt pleaded guilty to embezzlement in September and remained out of custody until his sentencing April 11.