NEWS RELEASE
Office of Maryland Attorney General J. Joseph Curran, Jr.

February 26, 2002

Media Inquiries: Sean Caine 410-576-6357

BALTIMORE PRINTING CO. GM CONVICTED OF
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 1998

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 States.

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