Jersey City company's accountant sentenced to 18 months for embezzling $1M
Published: Thursday, June 17, 2010, 4:19 PM Updated: Thursday, June 17, 2010, 4:38 PM
Ken Thorbourne/The Jersey Journal

Daniel Chiu, a former senior accountant with Jersey City-based and publicly traded company Bel Fuse, Inc., was sentenced today to 18 months in prison for embezzling approximately $1 million from the company.

Chiu, 61, of Rockaway Township, New Jersey, previously pleaded guilty before United States District Judge Joel A. Pisano to an Information charging him with wire fraud. Judge

Pisano also imposed the sentence today in Trenton federal court.

According to documents filed in this case and statements made in court:

As a senior accountant at Bel Fuse, Chiu was responsible for handling the day-to-day administration of Bel Fuse?s stock option employee benefit plan, 401(k) plan, and profit-sharing plan.

From December 2001 to April 21, 2009, Chiu fraudulently authorized the issuance of more than 30,000 shares of Bel Fuse stock to himself by forging the signature of a Bel Fuse officer who was authorized to sign the authorization forms.

Chiu admitted that he limited the misappropriation of Bel Fuse stock to between 500 and 2,500 shares at a time in order to conceal his conduct from the company and its auditors.

Chiu further admitted that he also prepared false and fraudulent data inflating his actual contribution to Bel Fuse?s profit-sharing plan in order to cause Bel Fuse to transfer additional monies and stock to his 401(k) account.

In addition to the prison term, Judge Pisano also ordered Chiu to serve two years of
supervised release and to pay restitution in an amount to be determined.

In determining the sentence, Judge Pisano consulted the advisory United States
Sentencing Guidelines, which provide appropriate sentencing ranges that take into account the severity and characteristics of the offense, the defendant?s criminal history, if any, and other factors.

The Judge, however, was not bound by those guidelines in determining the sentence.

Parole has been abolished in the federal system. Defendants who are given custodial terms must serve nearly all of that time.

Fishman credited Special Agents of the Federal Bureau of Investigation, under the
direction of Michael B. Ward, in Newark, for the investigation leading to today?s sentence.

The government is represented by Assistant United States Attorney Justin W. Arnold of the U.S. Attorney?s Office Economic Crimes Unit in Newark.

Jersey City accountant admits embezzling $1M from company

By Joe Ryan/The Star-Ledger
November 19, 2009

JERSEY CITY -- A senior accountant for a Jersey City firm that manufactured telecommunications equipment pleaded guilty today in federal court in Trenton to embezzling roughly $1 million in cash and stock from the company, authorities said.
Daniel Chiu, 60, of Rockaway Township, said he drained more than 30,000 shares of stock and $500,000 from the retirement, stock-option and profit-sharing plans of Bel Fuse, Inc., said Paul J. Fishman, U.S. attorney for New Jersey.

Bel Fuse designs and builds components used in high speed telecommunications systems. It employs about 6,000 people, with branches in China, Hong Kong, the United Kingdom, Mexico, Germany, Czech Republic and the Dominican Republic.
A company spokeswoman did not immediately respond to a request for comment.

Chiu, a certified public accountant, was responsible for the day-to-day running of the company?s stock option plan, 401(k) plan and profit-sharing plan.

Beginning in December 2001, Chiu began illegally transferring stock to himself and inflating his contributions to the company?s 401(k) and profit-sharing plans. He was fired in April after the firm discovered the embezzling during a routine audit, said Robert Kirsch, an assistant U.S. attorney.

Company officials referred the matter to the U.S. Attorney?s office and have fully cooperated with the investigation, Kirsch said.

During today's hearing, he also admitted illegally transferring 2,000 shares of stock into a brokerage account controlled by his son, who did not work for Bel Fuse.

He pleaded guilty to wire fraud and faces up to 33 months in prison under the terms of his agreement with prosecutors, Kirsch said. Judges, however, are not bound by such agreements and have wide discretion when imposing sentence.
U.S. District Judge Joel A. Pisano freed Chiu on a $500,000 bond. Sentencing is scheduled for Feb. 18.