Tuesday, October 6, 2009

Ex-Farash CEO Accused of Stealing Funds

Former Farash Corp. chief executive Matthew S. Aroesty has been arrested on charges of stealing thousands of dollars from the property management company he once ran.

Aroesty, the grand-nephew of company founder Max M. Farash, was arraigned on a grand larceny charge in Brighton Town Court on Sept. 17.

A felony complaint alleged that Aroesty used Farash Corp. money to pay personal expenses "without authorization or permission." The amount he is accused of misusing was not specified but was greater than $50,000, according to the one-page complaint filed by a Brighton police investigator.

The 43-year-old Pittsford resident, who left Farash Corp. at the end of 2007, pleaded not guilty and the case was sent to a Monroe County grand jury. His lawyer, John Speranza, said Friday that he had limited information about the case but vowed to "forcefully fight" the allegations.

Assistant District Attorney William Gargan said Friday that the Brighton police had been investigating the case for several months.

Aroesty's arrest is a dramatic development in the saga of the wealthy, normally private Farash family, which has been under scrutiny since the 96-year-old family patriarch and his wife of more than 60 years, Marian M. Farash, both were declared mentally incapacitated in April 2007.

Rochester lawyer James C. Gocker was appointed guardian of their Farashes' real estate-based fortune, estimated to be as large as $500 million. Though much of his work has been done away from the public eye, occasional court hearings and filings have made clear the conflicts between Gocker and members of the family, including Matthew Aroesty and the Farash's daughter, Lynn Farash.

Among other things, Gocker oversaw removal of Aroesty as Farash Corp. CEO and Lynn Farash as the company's chairman. More recently, he unsuccessfully sought judicial permission to sell the family's Brighton estate and other property, which Max Farash had intended to leave to his daughter.

Aroesty became company president and CEO in late 2003 or early 2004.

He could not be reached for comment Friday, but Lynn Farash did speak out.

"Matthew is my cousin who I love and support. He worked closely with my father for 20 years," said Lynn Farash, Max and Marian Farash's only child. "I don't believe these allegations and I am appalled at what is being done to our family."

Full Article and Source:
Ex-Farash CEO Accused of Stealing Funds

See also:
Farash daughter wins case

Guardian Versus Family

Guardianship Cost $1 Million

Outrageous Guardianship Fees


StandUp said...

I smell a set up.

Thelma said...

I'll wait for the WHOLE story.

Anonymous said...

If this were just an article about a CEO geting indicted, I'd tend to believe it.

But, this is the Farash case and we all know that the Pirates have their hands on Max Farash's money and they're holding on for dear life.

And guardianship victims have all experienced being maligned and retalitated against.

So, all may not be what it seems here.

Glocker ousted Aroesty and Farash's daughter --- obviously, that was done to get to the money.

Norma said...

I think if Matt Aroesty were a crook, Lynn Farash would have said so.

But, she didn't. She stood with him.

I think it's them against the guardians. And the guardians are busy doing dirty tricks to neutralize their "competition".

jerri said...

hmmmmmm let me think a minute here me thinks i smell something rotten cooking hmmmmmmm to cover up wrongdoing? is this seedy diversionary tactics a low ball smokescreen could it be retaliation against Matthew S. Aroesty? could this be
r e v e n g e? what say you?

Anonymous said...

It sure looks like retaliation and revenge, Jerri.

The real truth will eventually come out.

I am sorry for what the Farash family has had to endure because of the guardianship. It's appalling.

Mike said...

Stand tall, Matt and Lynn!