TIME
May 5, 1967 12:00 AM GMT-4
After Edward M. Gilbert’s daring 1958 takeover of the E.L. Bruce Co., a leading manufacturer of hardwood products, Wall Street figured it would be hearing a lot more from the 34-year-old financial whizbang. What it heard was not exactly what had been expected. One day in 1962 Gilbert in formed Bruce directors that he had used $1,953,000 in company funds in a futile effort to cover heavy stock losses. Then he boarded a plane for Brazil. Returning voluntarily four months later, Gilbert has since lived a life that belies his onetime jet-set status. With his assets frozen by a $1,700,000 federal tax lien and much of his income earmarked for creditors, he has been running a modest Manhattan lumber wholesale firm, living quietly with his second wife Turid and their two children.
Last week Eddie Gilbert, still trim at 43, entered a courtroom in New York for sentencing on federal charges arising from his 1962 malefaction. Assistant U.S. Attorney Michael Armstrong praised Gilbert, who had pleaded guilty to three counts of his indictment, for having “cooperated with the Government and the SEC.” His own attorney described him as “thoroughly contrite.” While the defendant stood numbly, Judge Edmund L. Palmieri pronounced sentence: a $21,000 fine, two years in prison. Having also pleaded guilty to state larceny charges, Gilbert next faces sentencing in New York State Supreme Court, where he could get up to 30 years.
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