Floridians sentenced to federal prison in the Eastern District of Texas for conspiring to defraud military retail exchanges across the nation

SHERMAN, Texas – Two Floridians have been sentenced to federal prison in a fraud scheme targeting military retail exchanges, announced Eastern District of Texas Acting U.S. Attorney Jay R. Combs.

Gilda Rosenberg, 60, of Golden Beach, Florida, pleaded guilty to conspiracy to commit wire fraud and was sentenced to 30 months in federal prison by U.S. District Judge Amos L. Mazzant on July 30, 2025.  Judge Mazzant also ordered Rosenberg to pay restitution of over $1.6 million.

Amit Biegun, 46, of Aventura, Florida, was also sentenced to 30 months in federal prison by Judge Mazzant on June 24, 2025.

According to information presented in court, Rosenberg was the president and owner of Gilly USA, Inc., GBR Enterprises, Inc., and Gilly Vending, Inc., and Biegun was the chief financial officer of Gilly Vending.

The Army and Air Force Exchange Service (AAFES) is a government entity under the Department of Defense (DoD), responsible for operating stores located on U.S. Army bases, known as Post Exchanges (PX), and U.S. Air Force bases, known as Base Exchanges (BX).  These stores provide retail services to military service members, veterans, and their families.  AAFES is self-funded, operating mostly through the revenue of its sales of goods and services. AAFES stores and locations typically host a variety of vendors, also called concessionaires.

Beginning in 2016, AAFES awarded Gilly Vending over 20 contracts to provide vending services, snack contracts, beverage contracts, and micro-markets at military installations in California, Florida, Georgia, Kentucky, Maryland, North Dakota, Oklahoma, and Texas.  Depending on the size and location, these individual contracts generated anywhere from $24,000 to $1 million annually.  As part of the contracts, Gilly Vending paid commissions to AAFES based on those sales. Rosenberg and Biegun conspired to defraud AAFES by significantly underreporting sales figures resulting in a loss of commissions fees to AAFES.     

“The Army and Air Force Exchange Service (AAFES) is an integral part of the Department of Defense, providing vital services to our military service members, veterans, and their families,” said Acting U.S. Attorney Jay R. Combs.  “By stealing from AAFES, the defendants have stolen from the United States taxpayer and those who served their country with honor and distinction.  This sentence sends a strong message that this kind of fraud and abuse will not be tolerated.”

“The Defense Criminal Investigative Service (DCIS) and our law enforcement partners will methodically investigate allegations of fraud and corruption that impact the DoD and America’s warfighters,” said Acting Special Agent in Charge Chad Gosch, Department of Defense Office of Inspector General, DCIS Southwest Field Office.  “Today’s outcome reflects our unwavering commitment to ensuring the integrity of the DoD contracting process and holding accountable those who illegally enrich themselves at the taxpayer’s expense.”

“Today’s sentencing should serve as a stark reminder that our agents, and those of our partner law enforcement agencies, are relentless in their pursuit of those who choose to defraud the government,” said Special Agent in Charge John McCabe of the Department of the Army Criminal Investigation Division’s Mid-Central Field Office. “Army CID remains committed to protecting the resources that support our service members and their families.”

“The Department of the Air Force Office of Special Investigations (OSI) is undeterred from hunting down fraud impacting the goods and services supporting our military community worldwide” said Special Agent in Charge Nicholas J. Groesbeck, OSI Procurement Fraud Detachment 3, San Antonio, TX. “We appreciate the efforts of our joint partners who ensure those violating the law are held accountable.”

This case was investigated by the Department of Defense (DoD); Defense Criminal Investigative Services (DCIS); the Department of the Army Criminal Investigation Division (DACID); the U.S. Air Force Office of Special Investigations (AFOSI); and Army Air Force Exchange Services – Office of General Counsel. This case was prosecuted by Assistant U.S. Attorney Matthew T. Johnson.

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