the staff of the Ridgewood blog
Teaneck NJ, a federal grand jury today indicted the former chief executive officer and owner of a pharmaceutical company with wire fraud for his role in an embezzlement scheme, U.S. Attorney Philip R. Sellinger announced.
John Klein, 76, of Tampa, Florida, was indicted on one count of wire fraud. He was previously charged by complaint with one count of wire fraud. John Klein launched Teaneck based Cambridge Therapeutic Technologies in 2011, where he served as Chairman & CEO until 2017. Klein has held various leadership positions throughout the healthcare industry for over 30 years , earning 11th place on Forbes’ list of the Top 100 CEOs, being recognized with a Bronze Standing from Wall Street Transcripts, and receiving the Outstanding CEO Award from Mitchell and Company. He was also a recipient of the Ellis Island Medal of Honor.
According to documents filed in the case and statements made in court:
From May 2016 to January 2017, Klein misappropriated millions of dollars from the pharmaceutical company for his own personal use. In May 2016 a customer of the company paid $3.9 million into a company bank account that Klein controlled. After these transfers, Klein made numerous personal expenditures out of the account. Although he had diverted the customer payment for his own personal use, between December 2016 and January 2017, Klein caused the pharmaceutical company to write off the $3.9 million as uncollectable debt.
The wire fraud charge carries a maximum penalty of 20 years in prison and a fine of $250,000.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Special Agent in Charge James E. Dennehy in Newark, and special agents of IRS – Criminal Investigation, under the direction of Acting Special Agent in Charge Tammy Tomlins in Newark, with the investigation leading to today’s indictment.
The government is represented by Assistant U.S. Attorneys Anthony Torntore and Andrew Kogan of the U.S. Attorney’s Office Cybercrime Unit in Newark.
The charge and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
