Koss CEO Settles With SEC Over Lax Accounting Controls

Law360, New York (October 24, 2011, 2:52 PM EDT) -- Koss Corp. CEO Michael J. Koss on Monday agreed to pay his company more than $242,000 to settle federal securities regulators' suit in Wisconsin alleging his lax oversight allowed a now-imprisoned accountant to steal $34 million from the headphone manufacturer.

The U.S. Securities and Exchange Commission alleged that Sujata “Sue” Sachdeva, Koss' former principal accounting officer, and Julie Mulvaney, the company's former senior accountant, were able to embezzle the funds because Michael Koss did not create enough safeguards to protect against fraud. The company also reached...
To view the full article, register now.




Case Information

Case Title

United States Securities and Exchange Commission v. Koss Corporation et al

Case Number



Wisconsin Eastern

Nature of Suit



Rudolph T Randa

Date Filed

October 24, 2011


Government Agencies

Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.