Gilda Rosenberg, the former owner and president of Gilly Vending, was sentenced to two years and six months in prison for a fraud scheme that resulted in a monetary loss for the Army and Air Force Exchange Service, the Justice Department said July 30, 2025. (Joshua Magbanua/U.S. Air Force)
A Florida businesswoman who prosecutors say significantly underreported her company’s revenue from contracts with the Army and Air Force Exchange Service is headed to prison.
Gilda Rosenberg, the former owner and president of Gilly Vending, was sentenced to two years and six months behind bars and ordered to pay more than $1.6 million in restitution, the Justice Department said in a statement Wednesday.
A federal court in Sherman, Texas, handed down the same prison term to the company’s chief financial officer, Amit Biegun. Both Rosenberg and Biegun pleaded guilty to conspiracy to commit wire fraud, the DOJ said.
Gilly Vending had been awarded more than 20 contracts to provide vending services, snacks and beverages at military installations around the country, prosecutors said.
As part of the deals, it was required to pay commissions to AAFES, which is self-funded and operates mostly through revenue from its goods and services.
The contracts at bases in California, Florida, Georgia, Kentucky, Maryland, North Dakota, Oklahoma and Texas generated anywhere from $24,000 to $1 million annually, according to the Justice Department.
But Rosenberg and Biegun significantly underreported sales figures, resulting in an unspecified loss of funding.
“By stealing from AAFES, the defendants have stolen from the United States taxpayer and those who served their country with honor and distinction,” Jay Combs, acting U.S. attorney for the Eastern District of Texas, said in the statement. “This sentence sends a strong message that this kind of fraud and abuse will not be tolerated.”
In a separate case in Florida, Rosenberg pleaded guilty in March to conspiring to hide more than $90 million from the IRS in foreign bank accounts.
Her prison term for that crime was also two years and six months. It’s unclear whether she’ll serve those sentences concurrently.
