The biggest corporate embezzlement case of 2009 is being investigated by the SEC. Koss Corp., was alleged to have been taken for somewhere in the neighborhood of $25 million by an executive employee, in what seems to be years of reckless and brazen corporate theft.As we noted before, this was the biggest corporate theft case last year, and severely affected the company’s bottom line and publicly traded stock price, so it makes sense for the SEC to be taking a look at what exactly happened. With these kinds of dramatic stock price fluctuation based on internal employee behavior, securities regulators need to be looking at if there was any manipulation of the markets based on this remarkable incident.
A new noteworthy fact reported in the Milwaukee Business Journal was the breadth of the thefts. The company plans to sell off 25,000 items as part of the embezzlement scheme, in an attempt to partially restore the companies financial bottom line. That is a staggering number of purchases that went unnoticed in this relatively small company. The company hope that after these items are sold, they can restate some of their past earnings based on the money recouped.
It is still amazing that a reckless employee can nearly destroy a publicly traded company by stealing for years, before anyone noticed.
Undoubtedly, this massive disruption in their business is a terrible blow to the company’s prospects. No senior manager ever expects to have to face a massive employee embezzlement as the #1 threat to their business.
We hope they will soon be able to put this behind them, and get back to business.
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