CFO Black Blew $450K on Web Dates After $1.2M Theft

CLEVELAND, OH – John H.C. Black, 56, of Cleveland Heights, is facing federal charges after allegedly stealing $1.2 million from his former employer, Alotech Ltd., and using a significant portion – over $450,000 – to fund lavish gifts and trips for women he met on the controversial website SeekingArrangements.com. The former Chief Financial Officer is accused of one count of wire fraud, a charge brought forth by United States Attorney for the Northern District of Ohio, Steven M. Dettelbach, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office.

A criminal information filed in federal court details a scheme that began in early 2011, when Black started diverting Alotech’s funds for personal use. He allegedly exploited his position to access the company’s business checking account and secured unauthorized corporate credit and debit cards, including one using the CEO’s name without permission. Black then allegedly began issuing multiple corporate checks for his own benefit and making frequent ATM withdrawals using the illicitly obtained debit card. Alotech, headquartered in Brooklyn, Ohio, manufactures parts for the military, auto, and aerospace industries.

The investigation revealed a disturbing pattern of spending. According to the information, Black frequented luxury retailers like Louis Vuitton, Sak’s Fifth Avenue, Victoria’s Secret, and Neiman Marcus, purchasing items for women he connected with on SeekingArrangements.com – a site connecting older, wealthier men with younger women seeking financial support. The alleged purchases weren’t limited to retail therapy; Black also funded multiple personal vacations to Chicago for these women, along with jewelry from Hannoush and online purchases from Macy’s.com.

“According to these charges, this defendant defrauded his employer and betrayed the trust of all those who worked at Alotech,” stated Dettelbach. “The fact that he blew hundreds of thousands of dollars on lingerie, purses and shopping trips to Chicago for women he met online only adds insult to injury.” Anthony echoed the sentiment, bluntly stating, “Buying female companionship with Alotech’s bank account was not what John Black was hired to do. Black is being held accountable for the numerous financial schemes he utilized to defraud the company that paid his salary.”

The feds allege the spending went beyond trips and trinkets. Black reportedly purchased two automobiles – including an Audi – for one of the women. The entire scheme ran from approximately October 2011 to August 2012, when Black was terminated from his position at Alotech. The Federal Bureau of Investigation conducted the investigation, and the case is being prosecuted by Special Assistant U.S. Attorney Derek Kleinmann.

An information is merely an accusation, and Black is presumed innocent until proven guilty. If convicted, his sentencing will be determined by the court, considering federal sentencing guidelines, his criminal history (if any), his role in the offense, and the specifics of the violation. The government bears the burden of proving guilt beyond a reasonable doubt at trial. This isn’t just about stolen money; it’s about a calculated betrayal of trust and a blatant misuse of company funds for personal gratification.