MAIL FRAUD CHARGED IN BROKER CASE

BOSTON -- A former account manager at a New England brokerage has been charged in U.S. Federal Court here with participating in a scheme to defraud vendors -- the latest development in an ongoing federal investigation of the New England brokerage industry. George Grasso, 64, was an account manager at the now defunct Roberts & Associates, Natick, Mass., where he was responsible for all sales of grocery and frozen products to Stop & Shop Cos., Quincy, Mass. He was charged last week with mail fraud for allegedly diverting to himself and others at Roberts more than $127,000 -- money from manufacturers intended as inducements for retailers to promote certain products through a variety of incentives, including in-store displays, coupons or other promotional activities. Grasso could not be reached for comment last week. According to the charge, Grasso created documents, including invoices, between April 1988 and March 1992, that overstated the amounts owed to retailers from the manufacturer incentive programs. If convicted, he faces a maxiumum of five years in prison and a fine of up to $250,000. Donald K. Stern, U.S. Attorney here, said the charges against Grasso stem from an ongoing investigation of the brokerage industry by the Economic Crimes Unit of the U.S. Attorney's office here and the Federal Bureau of Investigation. The investigation -- focusing mainly on the handling of incentive funds paid by manufacturers to retailers -- has been ongoing for three years.