Former Latex International CEO sentenced to 70 months for embezzlement
Larry Thomas -- Furniture Today, July 11, 2012
BRIDGEPORT, Conn. — Kevin Coleman, former CEO of Latex International, was sentenced to 70 months in federal prison Tuesday for his role in an embezzlement scheme that cost the mattress and pillow producer more than $3.4 million.
Coleman, the company's CEO from 2005 to 2010, plead guilty to one count of wire fraud and one count of tax evasion earlier this year. In addition to the prison sentence, he was ordered to repay the company $1.7 million and pay $1.3 million to the IRS for back taxes, according to a report in the Hartford Courant.
According to the newspaper report, federal prosecutors said Coleman used the money to lead a lavish lifestyle that included purchases of expensive jewelry, cars and vacations for his wife and family, and a mistress in London.
Earlier this year, the company's former human resources director, Joanne Osmolik, was sentenced to four years in federal prison for her role in the scheme.
Latex International's current CEO, Dave Fisher, issued a statement saying the company is relieved the matter has been brought to a close.
"Coleman's sentencing, coming on the heels of his co-conspirator receiving a four-year prison sentence for her actions, closes this unfortunate chapter in our company's otherwise long and successful heritage," Fisher said. "We believe justice has been done and as I have said repeatedly, I am grateful to the U.S. Attorney, Federal Bureau of Investigation and the Internal Revenue Service for all their assistance throughout this process."
"As a result of his actions, it has taken the new management team a significant amount of time and effort to turn the company around and restore its financial health," he added.