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...
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