Former Duane Reade CEO Tony Cuti gets three years in prison for fraud
New York City -- Former Duane Reade CEO Tony Cuti was sentenced on Monday to three years in prison in connection with accounting fraud at the New York-based drug store chain.
Cuti, who is to report to prison on Jan. 31, 2012, also must pay a $5 million fine.
In sentencing Cuti, U.S. District Court Judge Deborah Batts in Manhattan called him a "gifted, arrogant, driven and entitled individual" who "bullied people into committing fraudulent acts to make the company look better than it actual was," according to published reports.
In June 2010, Cuti was found guilty of conspiracy, securities fraud and making false statements. Former Duane Reade CFO William Tennant was found guilty of securities fraud.
Tennant’s sentencing is scheduled for Aug. 29.
From November 2000 through June 2005, Cuti and Tennant reported inflated income from fraudulent real estate transactions and reduced company expenses through fictitious credits from vendors, prosecutors said.