Wednesday, January 20, 2010

Michigan Auto Parts Exec Pleads Guilty In $380K Embezzlement Scheme

Donald Gerald Johnston, 46, of Hudson, Michigan has plead guilty to one count of embezzling for stealing $380,000 from Kecy Products Inc., a local auto parts company. Johnston was originally charged last June with 22 felony counts of embezzlement and criminal use of a computer. The other counts were dropped with the plea agreement. The thefts reportedly took place over more than three years, from September 1, 2005, to December 31, 2008. Johnston was fired in February 2009. Kecy Products has struggled financially, laying off some 70 employees out of 100 and has been sold. The company had allegedly defaulted on $8.7 million in loans from Fifth Third Bank which had filed a civil lawsuit to recover the monies.

Read FraudTalk's original post on this story here.

Read the story here.

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