Shopping Habit Leads to Prison Sentence

Sujata Sachdeva leaves the courthouse after her arrest.

Image: WISN

How much money is recovered for Koss Corp. by an asset sale will affect the prison sentence for Sujata Sachdeva, who pled guilty to embezzling $34 million from the company.

The more the company can recover, the less time she'll spend in prison, according to the Milwaukee Business Journal.

The U.S. Attorney’s office and Sachdeva’s attorney last week filed a plea agreement in which she agreed to plead guilty and make full restitution to Koss Corp., from which she stole an estimated $34 million between 1997 and 2009. She agreed to cooperate with prosecutors’ efforts to collect the restitution.

What remains uncertain is exactly how much of the money can be recovered through federal seizure of her assets and a U.S. Marshal’s auction of the ill-gotten merchandise. The amount of restitution she agrees to pay will weigh in U.S. District Court Judge Lynn Adelman’s decision on the actual length of the sentence, experts said.

Federal agents already seized, between Dec. 30, 2009, and March 30, 2010, thousands of items Sachdeva bought with Koss funds and had stored in warehouse space, high-end boutiques, her Mequon, Wisconsin, home and even her Koss office. They also will seize $269,334 in improvements and fixtures at the home she shares with her husband and two children.

For more on former Koss exec Sujata Sachdeva's embezzlement case, click for the full story from the Milwaukee Business Journal (subscription required).