Former Arcandor CEO Middelhoff to appeal sentence

"We will appeal," Middelhoff's defense lawyer, Winfried Holtermüller, was quoted as saying in an article published in this Sunday's edition of the mass-circulation weekly Bild am Sonntag. Holtermüller later confirmed the intention to appeal when contacted by the Reuters news agency.

On Friday, the regional court in the western German city of Essen sentenced Middelhoff to three years behind bars after finding him guilty on 27 counts of embezzlement and three counts of tax evasion.

In handing down the judgement, the presiding judge said Middelhoff had imposed more than 500,000 euros ($636,000) in unjustified costs on Arcandor by, among other things, billing it for flights with charter jets.

The judge also cited fights in a private helicopter used to shuttle the 61-year-old former chief executive between his home in Bielefeld and Arcandor's headquarters in Essen - a distance of around 120 kilometers (80 miles) - so he could avoid traffic jams.

The judge rejected the defense argument that this was a legitimate business expense.

The prosecution had called for a jail sentence of three years and three months for Middelhoff, who is also a former chief executive of German media giant Bertelsmann.

Middelhoff's defense team had called for his acquittal.

Flight risk

In an unusual move, immediately after handing down Friday's ruling, the judge ordered that Middelhoff be held in custody due to the risk of him fleeing to France, where he also has a residence.

"I am pursuing all means to get Middelhoff out of investigative custody," Holtermüller told Reuters on Sunday.

Middelhoff stepped down as Arcandor's CEO in March 2009. Three months later, the company filed for bankruptcy.

pfd/ipj (Reuters, AFP, dpa)