Superior Electric Company of Ohio had an interesting way to make a profit: they cooked the books. Back in November, two former executives pleaded guilty to defrauding the IRS. Yesterday, John McShane, the former CFO, was sentenced.
Mr. McShane was sentenced to 15 months and ordered to make restitution of $1.62 million.
What did Mr. McShane and the former CEO and co-owner of Superior, Jerry Gemeinhardt, do? They put some of Mr. Gemeinhardt’s personal expenses as company expenses. Things like his yacht and landscaping expenses are some of what they allegedly did.
Mr. Gemeinhardt hasn’t been sentenced yet. I suspect his yacht will soon have a “for sale” sign on it.