GREENFIELD — The former Franklin Community Co-op general manager who pleaded guilty to five larceny charges in 2015 will not be required to repay the remaining balance of the $75,000 he admitted to embezzling from the cooperative.
Dwight E. Gaddis, a 56-year-old Minnesota native, will have his probation terminated once he pays a final $990, bringing restitution to $43,000.
This was the order of Franklin County Superior Court Judge John S. Ferrara, who five years ago accepted the plea bargain intended to force Gaddis onto five years of probation for the first four counts and compel him to pay back the embezzled $75,000.
According to Ferrara’s order of the defendant’s motion to dismiss, Gaddis agreed to pay $25,000 bail and make minimum payments of $300 per month during his probation.
Five years ago, the fifth larceny charge was placed on file with the conditions that Gaddis seek no employment involving significant financial or fiduciary responsibilities, that he provide proof of employment, and that he stay away from Franklin Community Co-op locations.
The member-owned food cooperative operates Green Fields Market in Greenfield and McCusker’s Market in Shelburne Falls. Ferrara wrote that “Gaddis substantially complied with all of the terms of probation,” paying the $25,000 posted for bail as well as $17,010 during the 60-month probationary period, for a total of $42,010.
“This is $990 less than the $43,000 total that he would have paid if he had made all 60 of the required minimum $300 payments,” Ferrara wrote.
Ferrara also wrote it is likely Gaddis wishes he was able to pay the full restitution, and the judge said he has no basis to assume Gaddis entered the agreement in bad faith. He wrote that Gaddis moved to Minnesota, got a job and worked steadily, making nearly all the $300 minimum payments.
“I therefore decline to extend Gaddis’ probationary period for what would likely have to be many years in order for him to fully repay the $75,000 restitution order. Also, the fifth count of larceny over $250 was removed from Gaddis’ file and dismissed.”
Ferrara cited the Massachusetts Supreme Judicial Court’s 2016 decision in Commonwealth v. Henry, which he said is “applicable to the circumstances presented,” in explaining his rationale.
But First Assistant Northwestern District Attorney Steven Gagne said this “is just another disappointing example of victims getting the short end of the stick when it comes to restitution in the criminal justice system,” adding that “it’s become harder and harder to make victims whole in cases involving financial loss” in the wake of the Henry decision.
In the state’s filed opposition to the defendant’s motion to terminate probation, Gagne argued the Henry decision is not applicable in this case.
Gagne told the Greenfield Recorder that the Supreme Judicial Court decision means an amount of restitution must be tied to a defendant’s ability to pay. In “pre-Henry days,” he said, some defendants were on probation 10 to 15 years so they had time to pay back every penny they stole. With Ferrara’s order, Gaddis will have paid back 57.33 percent of what he admitted to embezzling.
While he is bothered this means Gaddis will have reaped financial reward for committing a crime, Gagne is more frustrated that the cooperative will not get justice.
“They get shafted. They get shortchanged,” Gagne said, adding that the Henry decision “sends a signal that crime really does pay, and that defendants’ right matter more than victims’ rights. That’s just ridiculous to me. That’s not just.”
Gagne said he likely has the ability to appeal Ferrara’s order, but it probably wouldn’t be fruitful.
“I think the prevailing winds are blowing against us,” he said.
Messages left for the cooperative were not returned by deadline.
According to an article published in the Recorder in November 2015, the cooperative’s interim management team started noticing discrepancies in the business’ records shortly after Gaddis’ departure. These included what seemed to be fraudulent invoices, credit card abuse and suspicious bank withdrawals, which prompted them to hire a forensic accountant to investigate. That accountant discovered possible misuse of money by Gaddis, and the Northwestern District Attorney’s Office launched its own investigation, leading to his indictment on the five charges.
Attorney David P. Hoose, who represented Gaddis at the time, encouraged Ferrara to accept the recommendation, citing his client’s difficult upbringing as a factor in his decision to steal money. (Gaddis is now represented by attorney David Simanski.)
“He’s very, very sorry for the pain and trust issues he’s caused the co-op,” Hoose said at the time. “He’s told me that if he could pay it all back today, he would happily do it. This was a mistake on everybody’s part.”
Though he accepted the plea and agreed the cooperative should not have hired Gaddis, Ferrara said at the time that he didn’t consider the two mistakes proportionate to each other, and he did not feel Gaddis’ rough childhood was to blame for his actions so much later in his life.
This story was updated to correct who is Gaddis’ current attorney.
Reach Domenic Poli at: dpoli@recorder.com or 413-772-0261, ext. 262.