The Nation - News from Feb. 8, 1989

Financial planner Henry Gherman, who fled to the Far East last summer with nearly $10 million in investors’ money, pleaded guilty in Miami to federal embezzlement and mail fraud charges. Under a plea bargain agreement negotiated by federal officials and Gherman’s attorney, he faces a maximum penalty of 35 years in prison. Gherman, 52, also could be fined $1.75 million. The issue of restitution depends on bankruptcy court proceedings, according to U.S. Atty. Jeffrey Crockett. Gherman was arrested in Tokyo in October, 1988, and was returned to Miami last December. Court documents charged that Gherman “willfully and unlawfully devised a scheme to defraud, obtain money and property from clients” of Financial & Investment Planning Inc. in North Miami Beach.