Rediff.com  » Business » Indian-American fired over $20-million embezzlement charge

Indian-American fired over $20-million embezzlement charge

By Seema Hakhu Kachru
January 04, 2010 15:25 IST
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DollarsA top Indian-American 'shopaholic' executive, with a US-based electronic goods firm was fired after she allegedly embezzled a whopping $20 million from the company fund to pay for lavish lifestyle.

Sujata Sachdeva, Koss Corporation vice president of finance, was arrested by the Federal Bureau of Investigation for embezzling $4.5 million from Koss in just a few months ago. Sachdeva, who worked at Koss since 1992, claims she is a 'shopaholic' or compulsive shopper, a clinical condition known as oniomania.

She was fired on Christmas eve, after a preliminary audit by Koss determined the fraud exceeded $20 million since 2006.

The Milwaukee-based designer and seller of stereo-phones, plans to restate its financial statements.

In a statement, Koss said it has fired Sachdeva, who was the company's vice-president of finance and secretary, and the primary suspect in the embezzlement.

The company said it also has placed on unpaid administrative leave two members of the company's accounting staff who served under Sachdeva.

Koss said it has expanded the scope of its internal investigation of unauthorised transactions to include fiscal years since 2006 and to the present.

Koss found several credit card statements in her office, as well a pile of unworn women's luxury clothing with price tags still attached.

She admitted of falsifying documents and using company funds to pay for personal items.

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