U.S. Securities and Exchange Commission
Litigation Release No. 21810 / January 13, 2011
Accounting and Auditing Release No. 3230 / January 13, 2011
SEC v. Sujata Sachdeva, et. al., Civil Case No. 10-CV-747, USDC, E.D., Wisc.
SEC Obtains Permanent Injunction and Officer and Director Bar Against Sujata Sachdeva, Former Koss Accountant
The Securities and Exchange Commission ("Commission") announced that on January 11, 2011, the Honorable Judge Rudolph T. Randa of the U.S. District Court of the Eastern District of Wisconsin entered an order of permanent injunction against Sujata Sachdeva, the former Principal Accounting Officer, Secretary and Vice-President of Finance at Koss Corporation in Milwaukee, Wisconsin, arising from her embezzlement of over $30 million from Koss.
On August 31, 2010, the Commission filed its complaint against Sachdeva alleging that Sachdeva:
After discovering the embezzlement, Koss amended and restated its financial statements for fiscal years 2008 and 2009 and the first three quarters of fiscal year 2010.
Sachdeva consented to the injunctive order without admitting or denying the allegations in the Commission's complaint. The order:
In a related criminal matter in the U.S. District Court for the Eastern District of Wisconsin, on November 17, 2010, Sachdeva pleaded guilty to six counts of wire fraud and was ordered to pay $34 million in restitution and was sentenced to 11 years in prison.
The Commission acknowledges the assistance of the U.S. Attorney's Office for the Eastern District of Wisconsin, the Federal Bureau of Investigations and the Public Company Accounting Oversight Board.