Expert in Koss Case Blames Michael Koss and Management for Fraud

It has been almost four years since the massive fraud committed by Sujata Sachdeva against her employer, Koss Corp., was uncovered. A year after the discovery, Koss sued Park Bank for failing to find the fraud.  The company says that Park Bank should have known that a fraud was occurring when Koss employees with proper … Read more Expert in Koss Case Blames Michael Koss and Management for Fraud

Koss Settles Claims Against Former Auditor Grant Thornton

Cary Spivak – Milwaukee Journal Sentinel Koss Corp. collected $8.5 million from Grant Thornton, the accounting firm that audited Koss’ books during a portion of the time that Sujata “Sue” Sachdeva was stealing millions from the company. The payment made Wednesday settles a lawsuit filed in Cook County, Ill., in which Koss charged Grant Thornton … Read more Koss Settles Claims Against Former Auditor Grant Thornton

Compliance Week: Koss Embezzlement and Small Company Internal Controls

Today’s Compliance Week article, “SEC Pursues Small Company Over Lax Internal Controls,” [subscription required] discusses the SEC settlement with Koss Corp over the $34 million embezzlement by former Vice President of Finance Sujata (Sue) Sachdeva. The article explains the settlement, which is essentially a clawback of some of Michael Koss’s compensation:

Former Koss Employee in Talks to Settle SEC Case

Doris Hajewski – Milwaukee Journal Sentinel A year and a half after the embezzlement of $34 million from Koss Corp. was discovered, former accounting employee Julie Mulvaney is negotiating with the Securities and Exchange Commission to settle the regulatory agency’s case against her. Mulvaney was an assistant to Sujata “Sue” Sachdeva, former vice president of … Read more Former Koss Employee in Talks to Settle SEC Case

Former Koss Employee in Talks to Settle SEC Case

Doris Hajewski – Milwaukee Journal Sentinel A year and a half after the embezzlement of $34 million from Koss Corp. was discovered, former accounting employee Julie Mulvaney is negotiating with the Securities and Exchange Commission to settle the regulatory agency’s case against her. Mulvaney was an assistant to Sujata “Sue” Sachdeva, former vice president of … Read more Former Koss Employee in Talks to Settle SEC Case

Koss Fraud Coverup Deemed “Complex” By the Government

Yesterday the government’s sentencing memorandum in the criminal case against Sujata Sachdeva (the woman who stole more than $34 million from her employer, Koss Corp.) was released.  It had a number of items of interest. Prior to sentencing, the prosecution and the defense each get to make their case for a higher or lower sentence. … Read more Koss Fraud Coverup Deemed “Complex” By the Government

Koss Fraud: We Didn’t Bother to Look at the Endorsements On Our Own Checks, But Grant Thornton Should Have!

The latest news in the Koss Corporation fraud committed by ex-VP of Finance Sue Sachdeva is a lawsuit filed by the company against Sachdeva and auditors Grant Thornton. It’s unlikely that the company will collect much from Sachdeva, but the auditors are a great target because they have deep pockets (especially in the form of … Read more Koss Fraud: We Didn’t Bother to Look at the Endorsements On Our Own Checks, But Grant Thornton Should Have!

Update on Koss Fraud

The story of the alleged $31 million fraud at Koss Corp by the company’s former VP of Finance, Sue Sachdeva, hasn’t gotten much air time over the last month or so.  Aside from the usual class action lawsuits when there is a fraud discovered at a public company, the only bits of news that are … Read more Update on Koss Fraud

Koss Fraud: Unrecorded Revenue?

How does a company with about $40 million in annual revenue fall victim to a $31 million (or more) fraud by the VP of Finance? Simply, Koss Corp. gave Sue Sachdeva the keys to the castle. She apparently ran the company’s finance function with little oversight from anyone else. Koss has done something I think … Read more Koss Fraud: Unrecorded Revenue?