Former Commerce Corp. president sentenced to 15 months in prison

Logo courtesy of blog.steadygrowpro.com

From the Baltimore Sun:

The former president of a lawn care products firm founded 90 years ago by Russian immigrants was sentenced Feb. 29 to 15 months in prison after pleading guilty to defrauding the company.

Malcomb Cork, 55, led the Curtis Bay-based garden-care supplier from 2004 to 2012, when he was fired after the company's owner discovered about $800,000 missing.

The firm, which began in 1923 at the corner of Commerce and Baltimore streets, was the largest lawn and garden supplies distributor on the East Coast, with annual sales of around $200 million and 280 employees in Maryland and other states. It was forced into bankruptcy by creditors in 2013.

Prosecutors said the fraud scheme began in 2010 when Cork stole $450,000, which he disguised as a loan. In 2011 he made two more fraudulent wire transfers of $200,000 and $187,500 to his accounts, prosecutors said. They further allege Cork manipulated the company's financial statements to conceal that he had taken the money.

Cork, who was paid about $500,000 a year as president of Commerce, pleaded guilty to one count of wire fraud for the $187,500 transfer. The two other wire fraud charges were dismissed.

For more on the sentencing and fraud case, visit the Baltimore Sun.

According to the FBI, Cork pleaded guilty to fraud in November, 2015 and admitted to directing subordinates to transfer company money to outside accounts without providing invoices for the transfers.

From an FBI brief on the case: "Cork admitted that on July 15, 2011, he directed subordinates to transfer $187,500 from the lawn and garden supply company’s operating account to an account in the name of Chemence LLC. When the Chief Financial Officer (CFO) for the company, who was on vacation at the time of the funds transfer, returned and asked about the expenditure, Cork told the CFO that the funds were transferred to a trade show vendor with which the company was doing business. Cork advised the CFO that he would obtain an invoice in support of the money transfer. Despite repeated requests from the CFO, Cork never supplied an invoice to support the charge. Eventually the company discovered that the payment was unrelated to its business and attempted — unsuccessfully — to recover the money. Cork admitted that he knew he was not authorized to direct the funds transfer, but did so anyway for his own benefit."

Click here to read the rest of the FBI report on Cork's guilty plea.

Commerce Corporation closed for business in December 2012.

Related: Growing from Commerce's close, 

Griffin announces plans to expand retail division, brings in former Commerce employees