Yesterday, Sue Sachdeva was sentenced to 11 years in prison for her $34 million theft from her employer, Koss Corp. I predicted a little slap on the wrist of 5 to 7 years, so she got two little slaps instead.
The Washington Post is reporting that Judge Lynn Adelman gave her less than the 15 to 20 years requested by the prosecutor because of her “acceptance of responsibility and the genuineness of her remorse.”
Koss Corporation (NASDAQ:KOSS) filed a 10-Q with the Securities and Exchange Commission yesterday that pointed out the obvious… Now that their VP of Finance isn’t stealing at least $31 million from them, they think they’ll be more profitable.
The company says they’ll be restating the financial statements for the fiscal years ended June 2008 and June 2009, at the very least, and also restate the quarterly reports filed so far for fiscal 2010. The company says their numbers will improve now that Sue Sachdeva isn’t stealing from them (bold added by me):
Today’s Milwaukee Journal Sentinel provides additional insights into the alleged fraud committed by Koss Corp. VP of Finance Sue Sachdeva. Initially the fraud was estimated at $4.5 million, but that was quickly revised upward to more than $20 million. It is alleged that Sachdeva spent millions in corporate funds on clothing, jewelry, and other items.
My comments in the article:
In 2005, I worked briefly on a case involving Andrew Bandy, a property manager for Mallory Properties. Mallory Properties is one of the businesses owned by Milwaukee’s “Guiffre Brothers.” The company purchases distressed properties, renovates them, and rents them out. Bandy was a property manager there, responsible for overseeing the rental of buildings as well as repairs and improvements to those properties.
Michael Horne has an excellent synopsis of the case and the antics prior to this week’s sentencing. Horne writes:
Read moreSentencing of Milwaukee Embezzler, Andy Bandy, Coming Up This Week