Office of Maryland Attorney General J. Joseph Curran, Jr.
|February 26, 2002
||Media Inquiries: Sean Caine 410-576-6357
BALTIMORE PRINTING CO. GM CONVICTED
MISAPPROPRIATION OF EMPLOYEE BENEFITS MONEY
Attorney General J. Joseph Curran, Jr., announced today that Robert Krohn,
Jr. was convicted in the Circuit Court for Baltimore City of misappropriation
by a fiduciary and sentenced to two years, all of which was suspended.
Judge Stuart R. Berger placed Krohn on two years probation and ordered
that he perform 200 hours of community service.
According to the statement of facts Krohn, as General Manager and part
owner of National Graphics, Inc. a printing company in Baltimore City,
directed that the company cease paying medical insurance premiums to Kaiser
Permanente and Care First. He also directed that payments cease for union
retirement funds and union dues required under a collective bargaining
agreement between National and Local 61C of the Graphics Communications
Union. Between September 1997 and November 1998, National withheld payment
of employee benefits totaling $125,642.10. Although during this time period
National Graphics was experiencing financial difficulties, owners other
than Krohn were funneling company money into another business called Cherry
Tree Gifts, Inc. Payments to that company totaled $42,294.68 between September
1997 and September 1998. Other owners of National wrote checks to themselves
other than paychecks totaling $21,368.48 between September 1997 and November
In giving a suspended sentence, Judge Berger stated that he took into
consideration the fact that Krohn accepted responsibility for his wrongdoing
and that $60,000 was tendered in restitution. The company is also obligated
to make additional payments to Kaiser Permanente, Care First and the union
under a bankruptcy court-approved restructuring plan.
The case was the result of a joint investigation conducted by the Insurance
Fraud Division of the Maryland Insurance Administration, the Office of
the Attorney General and the Office of the Inspector General of the United