Ex-Arcandor boss faces prison

Thomas Middelhoff, the former CEO of the now-bankrupt German holding company Arcandor, was sentenced to three years imprisonment by the Essen District Court in northwestern Germany on Friday after having been found guilty of 27 counts of embezzlement and three counts of tax evasion.

The charges included several flights in private jets, as well as a commemorative publication that Middelhoff had billed to Arcandor. The corporation filed for bankruptcy in June 2009, three months after Middelhoff resigned as CEO.

The prosecution had asked for a sentence of three years and three months for the 61-year-old, who was accused of 44 counts of wrongdoing. He left the corporation saddled with costs of over 800,000 euros ($995,000). The defense called for Middelhoff to be acquitted.

The ruling, however, has not yet been finalized. Should the judgment stand, Middelhoff would without doubt face time behind bars, as such a lengthy sentence cannot be suspended.

ksb/mkg (Reuters, AFP, dpa)