A former chief executive officer of Cambridge Therapeutic Technologies, a pharmaceutical company in Teaneck, was indicted for wire fraud for his role in an embezzlement scheme, authorities said.
In a Nov. 17 press release, U.S. Attorney for the District of New Jersey Philip Sellinger announced that a federal grand jury returned a one-count indictment against John Klein, 76.
Klein, who formerly lived in Alpine and now resides in Tampa, Fla., was previously charged by complaint following his December 2021 arrest.
After a prescription drug distribution company paid $3.9 million to CTT for products sold in May 2016, the money was put into a bank account that Klein controlled, the indictment said.
Shortly thereafter, Klein dipped into the account several times to cover numerous personal expenses, including credit card payments for him and his wife, property taxes and tuition payment for his children’s private school, according to the indictment.
Although Klein diverted the customer payment for personal expenditures, he told CTT’s chief financial officer to write off the $3.9 million as uncollectable, bad debt, the indictment said.
NJBIZ was unable to reach Klein for a statement.
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