LITTLE ROCK — A former vice president of USA Drug was sentenced Monday in federal court to two years and nine months in prison for mail fraud and money laundering,
Garret Sorensen, 43, of North Little Rock, also will be subject to three years of supervised probation after his release, said Christopher Thyer, U.S. attorney for the Eastern District of Arkansas.
Sorensen had been scheduled to stand trial in May on 33 federal charges, but on May 2 he pleaded guilty to one count each of mail fraud and money laundering. The remaining charges were dropped as part of a plea deal.
The fraud charges stem from transactions made by Sorensen between 2005 and 2007 as vice president for advertising for USA Drug.
In late 2005, Sorensen, his wife, Katherine, and Shannon Walters formed Multi-Media Management, which they represented to be a media placement company. Garret Sorensen then began to funnel all insert and direct mail advertising for USA Drug through the company but did not notify USA Drug management of his interest in the firm, Thyer said.
Sorensen profited by about $500,000, Thyer said, by overstating insert quantity, billing for inserts that were not placed and charging USA Drug an inflated service fee. In addition, Sorensen included in MMM bills charges for the direct mailing of advertising materials for which no service charges had ever been paid by USA Drug before.
Thyer said more than $248,000 of the proceeds of Sorensen’s company was dispersed directly to him and his wife, with which they purchased, among other things, a boat, a Jeep, a Rolex watch and a Chevrolet Suburban.
The purchase of the boat was the basis for the money laundering charge to which Garret Sorensen pleaded guilty. Charges against Katherine Sorrensen and Walters, her sister, were dismissed.