Wisconsin Supreme Court says bank not liable in Koss
MADISON, Wis. — A divided
Wisconsin Supreme Court says Milwaukee-based Park Bank isn't liable
in a Koss Corp. executive's scheme to embezzle $34 million from the
The Supreme Court ruled 5-2 on Tuesday to uphold a ruling from the
state appeals court.
Sujata Sachdeva was sentenced to 11 years in federal prison in 2010
for using company funds to buy clothes, jewelry and other lavish
items. Sachdeva obtained a large portion of the embezzled funds
through Koss accounts at Park Bank.
Koss, based in Milwaukee, sued Park Bank in 2010, alleging bank
officials acted in bad faith because they didn't detect or
investigate the embezzlement.
The Supreme Court agreed Tuesday with the appeals court that said
failing to prevent or detect misconduct doesn't mean the bank acted
in bad faith.