CEO jailed for bribery and fraud over $9.2m purchase orders |
A chief executive officer (CEO) of a printing company was sent to jail for five and a half years for bribery and fraud over $9.2 million worth of purchase orders for printing products.
The CEO approached clients of the printing company to solicit business for a firm controlled by him. Assisted by a marketing manager of the printing company, the CEO falsely represented to five clients that his firm and the printing company were associated or related companies.
As a result, the clients were induced to place with the CEO’s firm a total of 140 purchase orders for printing products worth over $9.2 million. The CEO’s firm subsequently procured those products from the printing company at a lower cost, and earned price differences of over $1.2 million.
A production manager of the printing company accepted a total of over $128,000 from the CEO as rewards for not disclosing the scam.
The trio was subsequently laid with bribery and fraud charges. After being convicted of the charges, the CEO received a jail term of five and a half years, while the marketing manager and the production manager were jailed for two and a half years and one year respectively.
In passing the sentences, the judge said the court had to mete out custodial sentences to them as their offences were serious and constituted a serious breach of trust.
|