The former president and CEO of a wholesale produce market in Philadelphia has been charged with embezzling $7.8 million from the organization.
In 2018, the CEO abruptly resigned after serving as the CEO for 20 years. It was rumored that the federal government was looking into his and the company's finances as well as into connections to known local criminals.
The 60-year-old New Jersey resident faces multiple federal criminal charges.
According to federal prosecutors, the former CEO had full control over every aspect of the organization's expenditures and funds.
For years the CEO allegedly paid his personal credit cards and the rent on his New Jersey shore house with company funds. Prosecutors say he converted $1.1 million in checks from the organization's bank account into cash and used the money for personal purchases. He also allegedly caused $1.7 million in checks to be issued from the market's operating account to his friends and relatives.
The defendant hid his embezzlement by entering the payments as legitimate business expenditures for maintenance, snow removal, insurance, and legal fees, according to prosecutors.
Furthermore, prosecutors claim the CEO skimmed $2.6 million in cash from the pay gate at the market's parking lot. He allegedly used the cash to pay employees "under the table" and kept a substantial amount for himself.
The IRS also claims that the CEO evaded more than $2.1 million in federal income tax.
The former CEO faces a maximum sentence of 102 years in prison, a three-year period of supervised release, and a fine of $2,500,000. "Ex-president of Philly Wholesale Produce Market accused of embezzling $7.8 million" www.ai-cio.com (Mar. 11, 2021).