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 Wurld Media CEO Kerber goes to prisonRelease Date: July 10, 2009
News
Ex-Wurld Media CEO sentenced to state prison
Friday, July 10, 2009
By MAREESA NICOSIA, The Saratogian
BALLSTON SPA — The former Wurld Media CEO who stole more than $32,000 from the company through a sham corporation was sentenced to one to three years in state prison.
Gregory Kerber, 46, received the sentence and a $320 fine in Saratoga County Court Thursday morning in a courtroom filled with Wurld Media investors. Saratoga County Court Judge Jerry Scarano delivered the sentence.
Kerber must serve at least one year of the sentence before he’s eligible for parole, said Saratoga County District Attorney James A. Murphy III.
Wurld Media is the now-defunct Internet company established in 1999 by Kerber and Kirk Feathers, former president and chief technology officer. Located on Putnam Street in Saratoga Springs, the company disintegrated in 2005 and its assets were sold for $4.3 million to the video services company KIT Digital, formerly ROO Group, in July 2007.
Kerber was convicted of grand larceny May 7 after a Saratoga County jury found him guilty of using at least $32,000 of Wurld Media funds for personal use. Some of the cash went toward car repairs and food, while a large chunk of it, $16,000, he used to pay an attorney to defend himself in a previous criminal case.
Murphy said Kerber created the sham corporation called Yagi Box Technologies, Inc. to deposit money from Wurld Media accounts or cash checks made payable to Wurld Media, Inc.
"It was set up exclusively to hide funds and to divert funds from Wurld Media to Mr. Kerber," Murphy said, adding the fake business had no employees and no payroll, and most likely consisted of a binder with a corporate certificate in it — the extent of its assets.
At the time, Kerber was under indictment for falsifying business records, a felony to which he ultimately pleaded guilty and received a sentence of five years of probationary supervision.
Defense attorney David Grunenberg argued that Kerber should receive another term of probation because the defendant "didn’t realize he was committing a crime."
Kerber, in his own sentencing statement said: "I would have done a better job of concealing, if I thought I did something wrong."
He went on to apologize to all those affected by his conduct, including at least 15 investors present in the courtroom.
"Judge Scarano’s sentencing sends a message of deterrence that corporate greed will be punished," Murphy said. "Shareholders and investors will be protected when someone steals life savings and investments. Many people’s lives were unalterably shaken by Kerber’s selfishness and prison is the only appropriate penalty. This is the second felony conviction of Mr. Kerber and there appears to be no remorse or realization that what he did was wrong."
Murphy said there were more than 35 letters from angry victims who urged the judge to sentence Kerber to a period of incarceration.
Assistant District Attorneys Richard E. Wendling and Debra A. Kaelin prosecuted the case, and the Saratoga Springs Police Department, with Investigator Jack Barney, also worked extensively on the case.
Trial testimony indicated that the case commenced when an employee from SEFCU alerted the District Attorney’s office that Wurld Media checks made payable to the business were being deposited into a Yagi Box account. A trial witness indicated the unusual account activity appeared to be peculiar, suspicious and contrary to banking regulations.
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In a related Wurld Media case, Richard Saxton, the former vice president of finance for Wurld Media, was convicted of falsifying business records, a felony; failure to pay benefits and criminal contempt. Saxton has been sentenced to incarceration as well as probation, and he is currently appealing the conviction. Saxton’s defense lawyer has asked for an extension until the middle of September, Murphy said.
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