Topeka couple indicted on charge of embezzling $2.6 million
Originally published 01:04 p.m., August 7, 2008
Updated 04:00 p.m., August 7, 2008
The former chief financial officer of Vektek Inc. has been indicted along with his wife on charges of embezzling more than $2.6 million from the Emporia-based manufacturer, U.S. Attorney Eric Melgren announced Wednesday.
James W. Foremsky, 61, and Susan A. Foremsky, 56, both of Topeka, were charged with one count of conspiracy to commit crimes including bank fraud, wire fraud and money laundering. The crimes are alleged to have occurred at various times from 2002 through 2007 in Lyon County and elsewhere.
According to the indictment, from June 1995 to Nov. 8, 2007, James was the chief financial officer of Vektek. During that time, he had control over all of Vektek’s finances, including the company’s bank accounts.
James unlawfully withdrew funds from the company’s accounts in order to maintain a lavish lifestyle for himself and his family including:
- Expensive vacations
- Bar tabs
- Meals
- New vehicles
- Mortgage payments
- A hobby maintaining and showing jumping horses
According to the indictment, he altered internal checkbook spreadsheets and moved funds between accounts in an attempt to cover up the thefts. The indictment seeks the forfeiture of $2,646,554 in proceeds allegedly derived from the crime.
If convicted, the Foremskys face a maximum penalty of 30 years in federal prison and a fine up to $1 million.
The FBI worked on the case. Assistant U.S. Attorney Richard Hathaway is prosecuting.
Statement from Vektec:
To Whom It May Concern:
There is an ongoing investigation regarding inappropriate loss of company funds. The appropriate authorities have been contacted and are involved.
Vektek remains strong and very sound financially. Vektek continues to be aggressive in updating to state of the art manufacturing equipment, investing in new product development, and has seen continuous growth in sales.
Sincerely,
Troy Estes, President
Information for this story provided by the U.S. Attorney's Office.
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