VP Finance Sacked On Embezzlement Charges
In a shocking revelation, the audio accessories manufacturer, Koss, sacked its VP Finance, Sujata Sachdeva, for embezzling nearly $20 million. Sujata (Sue) had been on the company’s payroll since 1992. What is more shocking is the reason for the embezzlement. Sujata was paying off her personal credit card bills, totalling over $ 4.5 million dated between Jan. 1, 2008 and Dec. 19,
2009, from Koss’ accounts and then misrepresenting balances and statements of the company to cover up.
The fraud was brought to light by American Express executives who noticed a number of wire transfer payments from the Koss company account. Amex brought the deceit to the knowledge of Koss’ Chief Executive, Michael Koss. Sachdeva’s list of expenditures is quite intriguing. Nearly $1.4 million at Valentina Boutique, a high-end shop in Mequon, Wisconsin, a $670,000 tab at women's clothing store Au Courant in Milwaukee; $649,000 from Zita Bridal Salon in Whitefish Bay, Wisconsin; and $255,000 in purchases from Karat 22 Jewellers in Houston, Texas.
A complaint was filed by US Attorney’s Office in a Wisconsin federal court. Sachdeva’s next court hearing is on 11th January informs Michael Hart, her lawyer. Sachdeva has accepted all the charges to the FBI saying that she used to wire transfer the payments from the company’s accounts and then fudge Koss’ financial statements.