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Former CFO Sentenced for $30 Million Embezzlement Scheme
BOSTON – In a shocking turn of events, Richard Hajjar, former Chief Financial Officer of Alden Shoe Co., was sentenced to 70 months in prison and three years of supervised release for embezzling approximately $30 million from the company as part of a long-running scheme.
Hajjar, 64, of Duxbury, was ordered to pay restitution of $33,962,880 and forfeiture of $27,300,552. The sentence comes after Hajjar pleaded guilty to one count each of wire fraud, unlawful monetary transactions and filing a false tax return on May 5, 2021.
The scheme, which lasted from at least 2011 through October 2019, involved Hajjar writing checks to himself from company bank accounts and transferring funds from company accounts to his personal accounts and to another individual. In total, Hajjar embezzled approximately $30 million, which he used to enrich himself and to buy gifts and luxury travel for others close to him, including private flights to the Caribbean and diamond jewelry.
Furthermore, between approximately 2014 and 2019, Hajjar failed to report the proceeds of his embezzlement as income on his tax returns, thereby failing to pay approximately $5,112,822 in taxes to the Internal Revenue Service.
Acting United States Attorney Nathaniel R. Mendell, Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division, and Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations, made the announcement today.
Assistant U.S. Attorneys Mackenzie A. Queenin of Mendell’s Securities, Financial & Cyber Fraud Unit and Carol E. Head of Mendell’s Asset Recovery Unit prosecuted the case.
The case serves as a stark reminder of the devastating consequences of corporate greed and the importance of holding executives accountable for their actions.
Key Facts
- State: Massachusetts
- Category: White Collar Crime|Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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