Dive Brief:
- The U.S. Attorney for the District of Connecticut charged Joseph Nader, former CFO of metal fabrication company RAM Specialty Fabrications in Naugatuck, Connecticut, with six counts of fraud.
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Nader, 53, falsely represented the company's financial position to its owners, U.S. Attorney John Durham alleged in a statement.
- The former CFO also allegedly created a false bank statement depicting a balance of over $185,000 in a company account, when the balance was significantly less, and then provided that false bank statement to an outside accounting firm for preparation of the company’s year-end financial statements.
Dive Insight:
As a result of the misrepresentation, Durham said, the company issued bonuses in amounts they otherwise would not have, Durham said. Nader was among those who received a bonus.
Additionally, the indictment alleges Nader sent false invoices and pack lists to a customer, causing the customer to pay more than $100,000 for products that had not been purchased or shipped.
It is also alleged that Nader manipulated the company’s payroll system to give him excessive payments.
Nader is charged with six counts of wire fraud, which carries a maximum term of 20 years' imprisonment per count.
