What not to do with a drug Company millions of dollars? For two reasons, don’t supposedly cover personal credit card debts and pay for your child’s premium school tuition. According to a Justice Department complaint filed Monday, the former
CEO and owner of a New Jersey drugmaker has been detained for allegedly embezzling millions of dollars from his own Company. One count of wire fraud has been filed against the accused, 75-year-old John Klein of Palisades Park, New Jersey. On Monday, he was supposed to appear in front of a court by video.
According to authorities, Klein allowed the Company to depict the situation as though the money had not been received. Klein appointed a new chief financial officer (CFO) in July 2016, who was responsible with preparing a profit and loss account for the Company sales and debts. According to the DOJ complaint, the CFO claims Klein delivered a $3.9 million account receivable from a customer that had not been collected. With Klein’s knowledge and permission, the business attempted to write off the $3.9 million as an unpaid debt in December 2016 and January 2017.