Sujata “Sue” Sachdeva, an executive with Koss Corporation since 1992, has been charged with massive credit fraud for an estimated $20 million in unauthorized 
credit card transactions. Koss Corp., makers of headphones, CD players and other electronics, reported revenues of 38.2 million in 2008.
Sachdeva has acknowledged to the FBI that she falsified documents and that she had transferred money to her credit card account. With no restraint Sachdeva shopped at the best stores and bought the best clothes.
In one shop, Valentina Boutique in Mequon, Wisconsin, Sachdeva purchased nearly $1.4 million worth of merchandise, racking up bills on clothes, furs and jewelery. Other boutique bills ranged well into the hundreds of thousands of dollars. With no restriction it is reported that her bills are; $670,000 at a women’s shop Au Courant in Milwaukee, $649,000 from Zita Bridal Salon in Wisconsin, and $255,000 at the Karat 22 Jewellers in Houston, Texas.
How They Found Out
American Express became wise to the alleged fraud when they noticed that a personal credit card account was being paid with wire transfers from a Koss bank account. American Express then contacted Michael Koss, Chief Executive and owner of Koss Corp. telling him of the transfers.
Mr. Koss investigated Sachdeva’s office and found credit card statements and “several large piles of women’s clothing, with the price tags still attached in her office.” FBI agents that were investigating the alleged money transfers found new clothing items with price tags still attached. Some items were in excess of $2,000.
Claims to be an ‘Oniomaniac’
The former Koss executive suggested that she suffered from oniomania, a shopping addiction. Oniomania comes from the Greek word onios meaning for sale and mania meaning insanity. The disorder typically manifests itself in compulsive credit card use and is considered a clinical addiction or impulse control disorder.
Some people find relief through compulsive shopping. Acting as an anti-depressant, compulsive shopping provides relief from daily anxieties from those who suffer from this disorder.
The holiday shopping season seems to be the most difficult season for oniomaniacs. Signs to be aware of:
- Excessive shopping for no reason
- Shopping to make yourself feel better
- Shopping alone
- Hiding spending habits from family and friends
- Shopping when you have no money
There Were No Accomplices
Sachdeva told FBI agents that she had been using her position as vice President of Finance to authorize wire transfers. She said that she acted alone and only requested that her assistants make the transfers, falsifying the balance in the Koss account to cover up the spending.
FBI agents confiscated evidence directly from her home, also with the price tag still attached ($2,000). In addition to dismissing Sachdeva, two members of the accounting staff have been placed on unpaid administrative leave.
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