A former executive at A&P admitted in federal court in Newark Tuesday that he fraudulently used company funds to buy over 7,000 tickets to Giants games, Lady Gaga concerts, "The Book of Mormon'' musical and other high-demand events, then re-sold the tickets to pocket more than $1.2 million.
John Moritz, A&P's former SVP of marketing, plead guilty to the scheme, which occurred between December 2010 and December 2011. The tickets Moritz purchased were supposed to be used to reward A&P employees for good work and "for other legitimate business purposes," according to a statement by U.S. Attorney Paul Fishman.
In order to conceal the scheme, Moritz, according to court documents, asked ticket vendors to hand-deliver tickets directly to his residence. He also told certain ticket vendors to only issue invoices in amounts less than $100,000 in order to stay within his authorized invoice approval level as designated by A&P, according to court documents.
During this same period, A&P was under Chapter 11 bankruptcy protection and seeking wage and benefits concessions from its employees. Moritz left A&P in 2012.
The wire fraud count carries a maximum potential penalty of 20 years in prison and up to a $250,000 fine. Sentencing is scheduled for July 9.
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