Former CEO of Manhattan-based Rockwell Gajwani has been hit with a guilty plea for embezzling over $1.6 million from his own company, according to the U.S. Attorney’s Office in New York.
Gajwani, who served as both CEO and President, faces substantial fines and restitution after he admitted to siphoning off funds through wire transfers, falsified checks, and other means.
Acting U.S. Attorney Joon H. Kim called Gajwani’s actions ‘shameful,’ noting that instead of leading his company, he devoted himself to hiding his fraud from the IRS.
The scheme spanned over two years, from October 2011 to March 2013. During this time, Gajwani wrote himself checks totaling over $940,000 and wired nearly $1.7 million to his personal account, far exceeding his authorized compensation.
Gajwani also took steps to conceal his embezzlement from the company’s parent entity by directing employees not to communicate with the Parent Company and manipulating financial reports to mask his ill-gotten gains.
As part of his plea deal, Gajwani agreed to pay back $1,975,068.04 in restitution and a penalty of $1,612,841. He will now face the consequences of his criminal actions.
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Key Facts
- State: New York
- Agency: DOJ USAO
- Category: Public Corruption|White Collar Crime|Organized Crime
- Source: Official Source ↗
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