Gnau Draws 3 Years for Postal Service Fraud

John Gnau, a Michigan businessman who was state chairman of President Reagan’s 1980 campaign, was sentenced to three years in prison and fined $10,000 today for conspiring to cheat the Postal Service.

Gnau told U.S. District Judge George Revercomb, “I’m sorry and much wiser” and reminded the judge of a request that his sentence include community service.

Prosecutors had lauded Gnau for his help in exposing the conspiracy, but demanded a long prison term.

Gnau pleaded guilty Oct. 17 to illegally paying $2,500 last Feb. 25 to Peter Voss, former vice chairman of the U.S. Postal Board of Governors.

Gnau, 56, also admitted in the two-count felony information that he and Voss conspired, beginning in December, 1983, to defraud the Postal Service by attempting to steer postal procurement contracts to manufacturing and real estate companies represented by Gnau.

The case arose from Gnau’s efforts to profit from a $250-million mail-sorting equipment contract that Voss sought to have awarded to Recognition Equipment Inc. of Irving, Tex., according to U.S. Atty. Joseph DiGenova.

Gnau was sentenced under a section of federal law that gives parole officials wide discretion in setting release dates. A spokesman for DiGenova said it is unlikely Gnau will be released soon. He was ordered to report to prison by Feb. 1.

“I feel I’m going to come back,” Gnau said as he left the courtroom. “In the meantime, I’m very remorseful and sorry it happened.”

Revercomb sentenced Gnau to three years and a $10,000 fine on the conspiracy charge and to two years on the charge of making an illegal gratuity. The sentences will run concurrently.

Gnau had faced a possible sentence of seven years in prison and a $500,000 fine.