How $34 Million Disappeared. Koss Corporation is a publicly traded company that designs and sells stereo headphones
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Free InquiryKoss Corporation: How $34 Million Disappeared. Koss Corporation is a publicly-traded company that designs and sells stereo headphones. The Koss family controls a majority of the Company’s stock. On November 17, 2010, Sujata “Sue” Sachdeva, the former Vice-President of Finance was sentenced to 11 years in prison for embezzling $34 million from the Company. Her attorney claimed that she was a Shopaholic. From 1992 to 2009, Sachdeva was the Principal Accounting Officer, Secretary, and Vice-President of Finance at Koss. As a result of the embezzlement, Koss Corporation was required to restate its financial statements for 2008, 2009, and the first quarter of 2010. Sachdeva used the embezzled funds to sustain a lavish lifestyle including purchasing a vacation ownership interest in Hawaii, a Mercedes Benz, and other automobiles. She also used the proceeds to pay for luxury travel and numerous personal items, including luxury clothing, furs, designer shoes, jewelry, and art. One neighbor stated that packages delivered to her front porch would sometimes reach 6 feet high! Sachdeva also maintained a large household staff. Such purchases were well beyond her Koss salary (approximately $175,000). She explained her lifestyle by stating that her husband earned a couple of million dollars a year and that they both came from wealthy families.
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