Former Latex Int'l CEO Pleads Guilty

February 29, 2012  by in UnCategorized   

By Home Furnishings Business in Legal on March 1, 2012

Former Latex International CEO Kevin Coleman has entered a guilty plea to federal wire fraud and tax evasion charges.

The plea stemmed from Shelton, Conn.-based Latex International's discovery that significant funds had been embezzled from the company. Coleman is the second former senior executive of the company to plead guilty to embezzlement charges. Last month, Joanne Osmolik, the company's former head of human resources pleaded guilty to wire fraud charges.

Latex International President and Chief Executive Officer Dave Fisher said that after the embezzlement was discovered, "a comprehensive investigation was undertaken using experienced outside investigators and auditors. Evidence uncovered during that investigation was turned over to federal authorities who initiated an independent investigation. That investigation resulted in the guilty plea entered today."
 
Fisher added that the company is pleased that federal authorities are prosecuting the case and that mandatory federal restitution laws will assist the company to recover at least some of the embezzled funds.

"Coleman's guilty plea today demonstrates that he betrayed his obligations to the company, its employees and stakeholders," Fisher said. With Coleman and Osmolik pleading guilty, "this sad chapter in our company's history is now formally behind us."