Once a hometown hero and rising star in the business world, Michael Monus now faces prison time and $36 million in fines for looting Phar-Mor Inc., the discount drugstore chain he co-founded.
The company's former president was convicted Thursday of all 109 charges against him in a $1 billion fraud and embezzlement scheme that drove the Youngstown-based chain into bankruptcy.Phar-Mor had several stores in Utah that were closed after the chain declared bankruptcy when the wrongdoing was revealed in 1992.
Monus, 48, smiled slightly and shook his head as the federal jury returned the guilty verdicts. Lead defense lawyer J. Michael Murray said he would appeal.
The convictions are punishable by up to 1,246 years in prison, but under federal sentencing guidelines, Monus probably will get about 15 to 20 years, prosecutors said.
Prosecutors say Monus looted his company to bankroll a lavish lifestyle and prop up his failed World Basketball League minor-league sports venture.
It was Monus' second trial. His first ended in a hung jury in June; an investigation into allegations of jury tampering is continuing.
Defense lawyers said Monus was betrayed by his chief financial officer, Patrick Finn, and the chief executive officer of Phar-Mor's parent company, David Shapira.
The defense said Finn and Shapira made Monus the scapegoat for their own wrongdoing and mismanagement.
Finn pleaded guilty to federal fraud and tax charges. He received a reduced sentence for cooperating with prosecutors and testifying against Monus.
Earlier Thursday, Phar-Mor announced it had reached agreement with its creditors on a reorganization plan that would allow it to emerge from bankruptcy as a publicly held company with 102 stores - about one-third the number it had when the fraud was discovered.