Former Latex International VP gets four years in embezzlement

Larry Thomas -- Furniture Today, April 26, 2012

NEW HAVEN, Conn. — The former vice president of human resources at Latex International has been sentenced to four years in federal prison after she admitted embezzling more than $1.75 million from the company.

Joanne Osmolik, 52, admitted that she and former Latex CEO Kevin Coleman used company credit cards for personal expenses and then falsified expense reports to pay the credit card bills and other personal expenses from October 2008 through November 2010.

Osmolik pled guilty to one count of wire fraud, stemming from the electronic transfer of company funds that were used to pay the fraudulent expenses.

U.S. District Judge Stefan Underhill also ordered Osmolik to forfeit tens of thousands of dollars worth of personal property, as well as real estate in Vermont. The personal property includes several pieces of furniture, electronics, appliances, seven motorcycles, four snowmobiles and five trailers.

Coleman has pled guilty to one count of wire fraud and one count of tax evasion and is scheduled for sentencing on May 30.

Latex International's current president and CEO, Dave Fisher, issued a statement saying the company is "pleased they finally have been brought to justice."

"It has taken the new management team several years to pull itself out of the painful financial morass that (Coleman and Osmolik) caused our company," Fisher said. "I am very grateful for the diligent efforts of the U.S. Attorney, Federal Bureau of Investigation and the Internal Revenue Service for all their assistance throughout this process."

Click here to read the New Haven Independent's story on Osmolik's sentencing.