A former executive and owner of a pharmaceutical company embezzled millions of dollars from his company to use for personal expenses, the U.S. attorney's charged in a criminal complaint released Monday.
John Klein allegedly took about $3.9 million from a customer in 2016 and deposited it into an account he controlled, then used the money to pay for personal expenses including credit card payments, property taxes and his child’s private school tuition, all while allowing the company to represent in its financial statements that the money hadn’t been collected.
The 75-year-old Palisades Park resident was charged with one count of wire fraud. Klein was scheduled to make an initial court appearance Monday afternoon by videoconference, and information on whether he had retained an attorney wasn’t available. Wire fraud is punishable by a maximum prison sentence of 20 years.
Klein's company wasn't identified in the complaint, but his online bio and other court filings list him as the CEO of Cambridge Therapeutic Technologies, a company that was headquartered in Teaneck and engaged in the packaging and distribution of pharmaceuticals.
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In an email Monday, former Cambridge CEO Mark Adams said the company went out of business due to Klein's actions.
“We are thankful to the U.S. attorney's office and the FBI for doing such a thorough investigation and holding Klein accountable for his years of fraud," Adams wrote. "Hopefully the victims can move forward and overcome the damage he has done to so many.”
