The former chief financial officer of Soundpath Health was sentenced today in U.S. District Court in Seattle to a year and a day in prison for embezzling more than $631,000 from his employer.
The embezzlement was part of a complex wire fraud scheme that 58-year-old Zachary Augustus Smulski used in an attempt to fund his own start-up companies.
When the comptroller at Soundpath Health discovered that Smulski had hidden company funds, the CFO transferred the money back to Soundpath and left the company. Today Smulski paid $29,514 in restitution before U.S. District Judge Robert S. Lasnik imposed an additional three years of supervised release to follow prison.
According to records filed in the case, Smulski was hired as CFO of Soundpath Health in 2008. Three years later, in order to improve the company’s cash reserves, he initiated a leaseback program, which should have put cash on the company balance sheet. Instead, however, he diverted funds received under the program to accounts he established for a start-up company he was developing.