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Ex-Crispers CEO Gets 2-Year Prison Term For Embezzlement

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By ELAINE SILVESTRINI | The Tampa Tribune

Published: September 26, 2008

Updated: 09/26/2008 11:23 am

TAMPA - David Haas, the former chief executive of Crispers restaurants, was sentenced this morning to two years in federal prison for embezzling more than $400,000 from his company.

"In my view, in this day and age, we need to send a clear message for those who are responsible for overseeing the financial well being of corporate America that criminal fraud will not be tolerated," U.S. District Judge Richard Lazzara said.

Before he was sentenced, Haas apologized for his crimes, saying, "I am remorseful. …What I did was wrong. There's no doubt about it. What I did was wrong, and I take full responsibility for it."

Assistant U.S. Attorney Terry Zitek questioned whether Haas was really remorseful, telling the judge Haas was "continuing to stick it" to the company by using its FedEx account to mail personal packages even after he pleaded guilty to stealing.

Haas pleaded guilty in June to three counts of interstate transportation of stolen money in the form of wire transfers and a check from the restaurant chain owned by Lakeland-based Publix supermarkets.

Dennis Wamsley, director of loss prevention for Publix, asked for the maximum sentence, telling the judge Haas' actions "led to operational decisions that were wrong for Crispers and led to tangible negative results. …The good names of Publix supermarkets and Crispers were tarnished."

The charges carry a maximum prison term of 10 years and fines of up to $250,000 on each count. The court's probation department calculated the sentencing guidelines in this case to be 18 to 24 months in federal prison. The prosecution contested that calculation, arguing that it should be 24 to 30 months in prison. The defense asked for a sentence of probation and home detention.

As part of a plea agreement, the prosecution recommended a sentence at the low end of the guidelines range. When Lazzara ruled against the prosecution's arguments over how the range should be calculated, Zitek stood by the government's promise and recommended an 18-month sentence.

But the judge said a high-end sentence was warranted because of the seriousness of the crime.

Haas will also have to pay restitution of $153,000, an amount Publix has not recovered.

Haas served as interim chief executive officer of the Crispers chain in 2007.

According to the plea agreement, beginning that August, Haas three times directed a Crispers financial officer to transfer funds to accounts in New Jersey. In two of the cases, he maintained the transfers of $250,000 and $100,000 were connected with the purchase of a Crispers restaurant.

Once, he directed the financial officer to process a check for $53,750 to "HC, LLC." Haas explained that was the executive search firm Hill & Cutler, which was assisting in the search for a permanent CEO. The check was deposited into an account in the name of Haas Consulting LLC, which is controlled by Haas. Hill & Cutler never existed, according to the plea agreement.

In a sentencing memorandum filed with the court, Haas' attorney described the defendant as suffering from post-traumatic stress syndrome as a result of his personal experiences with the attacks on the World Trade Center in New York on Sept. 11, 2001. Haas was on a train that was entering the station under the building as the attacks happened and witnessed the devastation in person. In addition, he lost five friends in the attack and saw fellow workers lose their jobs, the memorandum states.

Haas became dependant on the drug Ambien, but never sought counseling that was available, the memo states.

"Ironically, this was the second World Trade Center bombing he was involved in," the memo continues. "He was present on February 26, 1993, in the WTC for an interview during the first terrorist incident. The memory of making his way down smoke filled stairways still remains."

However, Zitek said the government had interviewed five witnesses who said Haas was not at the World Trade Center on Sept. 11. Instead, he was at home in New Jersey, the prosecutor said.

Questioned under oath, Haas stood by his statement that he was at the trade center that day.

Reporter Elaine Silvestrini can be reached at (813) 259-7837 or esilvestrini@tampatrib.com.

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