Former Pharma CEO Stole from own Company

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 the DOJ, in May 2016, Klein reportedly withdrew $3.9 million from a client and transferred it to a Company bank account he controlled, all while claiming that the bill had not been paid. Klein utilised the money for a variety of personal costs after making the transfer, including credit card payments for himself and his wife, property taxes, and tuition for his child’s private school, according to the DOJ complaint.

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.