In one of biggest embezzlement cases ever, Sujata “Sue” Sachdeva, 46-year old former Vice President of Finance and Principal Accounting officer at Milwaukee-based Koss Corp., was indicted by a grand jury on six charges Wednesday, accusing her of embezzling $31 million from the headphone manufacturer and buying furs, purses, shoes, jewelry and airline tickets.
According to the indictment, Sachdeva authorised numerous wire transfers of funds from bank accounts maintained by Koss to pay for her American Express credit card bills.
In addition, Sachdeva used money from Koss’s bank accounts to fund numerous cashier’s checks, which she also used to pay her personal expenses.
Sachdeva used the money she fraudulently obtained from Koss to purchase personal items including women’s clothing, furs, purses, shoes, jewelry, automobiles, china, statues, and other household furnishings.
Sachdeva also used the money to pay for hotels, airline tickets, and other travel expenses for herself and others, to pay for renovations and improvements to her home, and to compensate individuals providing personal services to her and her family, the indictment alleged.
According to the indictment, Sachdeva sought to conceal her fraud by directing other Koss employees to make numerous fraudulent entries in Koss’s books and records to make it appear that Sachdeva’s fraudulent transfers were legitimate business transactions.
She directed Koss employees to conceal her fraudulent transfers as well as the fraudulent entries in Koss’s books and records from Koss’s management and auditors.
She was fired last month from her job and arrested after alleged fraud was discovered when American Express noticed that a customer’s personal card account balances were being paid via several large wire transfers, originating from a Koss bank account. Amex told the company’s chief executive, Michael Koss, who found credit card statements in Sachdeva’s name and “several large piles of women’s clothing, with the price tags still attached,” in her office.
A criminal complaint said the $4.5 million was spent at clothing stores and boutiques, including more than $127,000 at A C Zuckerman Jewelers, $213,000 at Gigi of Mequon and $649,000 at Zita Bridal Salon on Silver Spring Drive. Investigators said Sachdeva racked up a $1.3 million bill at the Valentina Boutique in Mequon.Source: www.wisn.com
While searching Sachdeva’s house, office and rented office space. Feds found tons of shoes, luxury clothes, etc.
Federal agents investigating the massive embezzlement case at Koss Corp. listed 461 boxes of shoes and 34 fur coats among thousands of items recovered from Third Ward offices rented by former vice president of finance Sujata “Sue” Sachdeva.
Many items stored in the office space in the Marshall building still had tags attached to them, with prices up to $20,000, according to documents filed in federal court related to a search warrant in the case. Sachdeva told investigators she had rented an additional storage unit, which was not identified in the warrant.
Sachdeva held the lease on the Marshall building office space, but the rent was paid by the owner of a resale shop in the building, according to the warrant.
The clothing in the office space was held on 65 racks, at least 50 plastic storage containers and several cardboard boxes. Agents also found statues, paintings, Waterford crystal, luggage from Louis Vuitton and Canyon, chandeliers, crystal vases, glassware, 32 furs – in addition to the coats – and five fur throws. People close to the situation say the clothing ranges in size from 8 to 14.
Marshall building items don’t represent all of Sachdeva’s shopping sprees. In all, 22,000 items have been recovered, including things stored in her Mequon home and at local luxury stores that kept paid-for purchases in their storage rooms for their best customer.Source: www.jsonline.com
If convicted, Sachdeva faces a total maximum penalty of up to 120 years in prison and fines of up to $1.5 million, plus forfeiture of the items identified in the indictment and restitution.
Her attorney, Michael F. Hart, claims that his client had a mental condition that fueled her alleged purchases and that she would be evaluated. But I wonder, isn’t that mental condition the definition of one of the human sins – GREED?