Businessman, 73, faces 20 YEARS in prison for embezzling more than $4 million from his industrial firm to build a boutique winery and horse ranch on a private farm in Virginia
- Gerhard Bauer funneled money from his employer, believed to be the industrial company Frenzelit, through a mail fraud scheme between 2010 and 2017
- He used the money to fund his private ventures, Goose Creek Farm and Otium Cellars in Purcellville, Northern Virginia
- German citizen Bauer pleaded guilty to the embezzlement charges this week and now faces a maximum sentence of 20 years behind bars
A 73-year-old businessman faces 20 years in prison after pleading guilty to embezzling more than $4 million from his industrial company to build a boutique winery and horse ranch.
German citizen Gerhard Bauer admitted to stealing more than $4 million from his employer, believed to be the industrial company Frenzelit, through a mail fraud scheme.
Bauer, who is listed as the president of the company’s U.S. subsidiary in Virginia, used expensive company checks to pay for his own personal expenses between 2010 and 2017.
He also used false invoices to justify the charges, the U.S. Attorney’s Office for the Eastern District of Virginia said.
Through this plan, Bauer funneled $1,490,000 toward building his privately owned ventures, Goose Creek Farm and Otium Winery in Purcellville, Northern Virginia, which comes complete with a horse ranch.
German citizen Gerhard Bauer (right) admitted to stealing more than $4 million from his employer, believed to be the industrial company Frenzelit, through a mail fraud scheme
Otium Cellars, which offered six types of wine, was bought by new owners in 2021, who renovated it and “reimagined” the brand as Otium Winery, the website says
Otium Cellars, which offered six types of wine, was bought by new owners in 2021, who renovated it and “reimagined” the brand as Otium Winery, the website says.
Meanwhile, the farm breeds and sells Hanoverians, a warmblood horse breed of German origin, according to the website.
Bauer also used $146,416 to pay private tuition at Foxcroft School, an all-girls boarding school, court documents show.
In addition, $357,683 was used to pay off his credit card debt, the affidavit says.
He is scheduled for sentencing on Nov. 7, and the state attorney’s office said he faces a maximum sentence of 20 years in prison — though actual sentences for federal crimes are typically lower than the most severe sentences.
A federal district court judge will determine each sentence, taking into account the U.S. Sentencing Guidelines and other legal factors.
Bauer funneled $1,490,000 toward the construction of his privately owned ventures, Goose Creek Farm and Otium Winery in Purcellville, Northern Virginia, which comes complete with a horse ranch.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Matthew Stohler, Special Agent in Charge of the U.S. Secret Service Washington Field Office, made the announcement after U.S. District Judge Leonie M. Brinkema accepted the plea.
The Loudoun County Sheriff’s Office assisted in the investigation.
Assistant U.S. Attorney Kimberly Shartar and former Assistant U.S. Attorneys Jack Hanly and Ron Fiorillo prosecuted the case.