The 73-year-old businessman faces 20 YEARS in prison for embezzling more than $4 million from his industrial company to build a boutique winery and horse ranch on a private farm in Virginia
- Between 2010 and 2017, Gerhard Bauer smuggled money from his employer, presumably the industrial company Frenzelit, via a mail fraud scheme
- He used the money to fund his private ventures Goose Creek Farm and Otium Cellars in Purcellville, Northern Virginia
- German citizen Bauer this week pleaded guilty to embezzlement charges 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 over $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 industrial company Frenzelit, through mail fraud.
Bauer, who is listed as president of the Virginia-based company’s US subsidiary, used expensive company checks to pay for his personal expenses between 2010 and 2017.
He also used fake bills to justify the expenses, the US Attorney’s Office for the Eastern District of Virginia said.
Through this program, Bauer provided $1,490,000 to build his privately owned Goose Creek Farm and Otium Winery, which includes a horse ranch, in Purcellville, Northern Virginia.
German citizen Gerhard Bauer (right) admitted stealing more than $4 million from his employer, believed to be industrial company Frenzelit, through a mail fraud
Otium Cellars, which offered six types of wine, was bought in 2021 by new owners who renovated it and “reimagined” the brand as Otium Winery, the website says
Otium Cellars, which offered six types of wine, was bought in 2021 by new owners who renovated it and “reimagined” the brand as Otium Winery, the website says.
The farm now breeds and sells Hanoverians, a warmblood horse breed of German origin, according to its website.
Bauer also used $146,416 to pay private school fees at Foxcroft School, an all-girls boarding school, according to court documents.
In addition, $357,683 was used to pay off his credit card debt, the affidavit said.
Sentencing is scheduled for Nov. 7, and prosecutors said he faces a maximum sentence of 20 years in prison — though actual sentences for federal crimes are typically less than the harshest sentences.
A federal district court judge will determine the sentence based on US sentencing guidelines and other legal factors.
Bauer committed $1,490,000 to build his private ventures, Goose Creek Farm and Otium Winery, in Purcellville, Northern Virginia, which also includes a horse ranch.
Jessica D. Aber, US Attorney for the Eastern District of Virginia, and Matthew Stohler, Acting Special Agent for the US Secret Service’s Washington field office, made the announcement after US District Judge Leonie M. Brinkema accepted the pleadings.
The Loudoun County Sheriff’s Office assisted in the investigation.
Assistant US Attorney Kimberly Shartar and former Assistant US Attorneys Jack Hanly and Ron Fiorillo led the case.