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Press Release

German National Pleads Guilty to $4 M Embezzlement Scheme

For Immediate Release
U.S. Attorney's Office, Eastern District of Virginia

ALEXANDRIA, Va. – A German man pleaded guilty yesterday to a mail fraud scheme by which he embezzled more than $4 million from his employer.

According to court documents, between 2010 and 2017, Gerhard Bauer, 73, the CEO and President of a U.S. subsidiary company, embezzled more than $4 million by writing corporate checks to pay various personal expenses. He also created fake invoices to justify the expenses. Of note, he paid over $1,490,000 for the construction of his Virginia farm, winery, and horse ranch. He also paid over $146,000 for private school tuition for his relatives.

Bauer is scheduled to be sentenced on November 7. He faces a maximum penalty of 20 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.

Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Matthew Stohler, Special Agent in Charge of the U.S. Secret Service’s Washington Field Office, made the announcement after U.S. District Judge Leonie M. Brinkema accepted the plea.

The Loudoun County Sherriff’s Office assisted in the investigation.

Assistant U.S. Attorney Kimberly Shartar and former Assistant U.S. Attorneys Jack Hanly and Ron Fiorillo prosecuted the case.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-cr-165.

Updated August 9, 2023

Financial Fraud