Koss Corp. Fires Auditor as Alleged Fraud Loss Widens to $31 Million
The news keeps getting worse at embattled stereo-headphone maker Koss Corp. The Milwaukee company now fears that the amount that disappeared from its coffers is closer to $31 million, according to a filing by CEO Michael Koss with the U.S. Securities Exchange Commission. The company last month fired Vice President of Finance Sujata "Sue" Sachdeva after a federal court alleged she embezzled Koss funds to cover credit-card charges for furs and jewelry, among other items. The losses that go back to at least 2005 were initially estimated at $4.5 million a couple of weeks ago. No one is saying if the company is even close to uncovering all of the alleged wrongdoing.