CEO To Prison For Embezzling Over $1 Million

It’s not often that we see a CEO ending up in jail. But today we have one to highlight: Ethan Farid Jinian, the former CEO of Bricsnet FM America, Inc., has been sentenced to 64 months in prison and ordered to pay $1,587,860.04 in restitution for embezzling more than $1 million from Bricsnet. 

On May 25, 2011, Jinian was convicted of 13 counts of wire fraud after an eight day jury trial. He was acquitted of one count of wire fraud. During the trial, evidence showed that Jinian, while serving as the chief executive officer of Bricsnet, a San Francisco-based software company, engaged in a scheme to defraud his employer. He falsely told a Bricsnet employee that he was owed money by Bricsnet in addition to his salary and repeatedly directed that employee to write him checks and transfer money to him. Jinian’s employment contract provided for a salary of $200,000 per year. The evidence showed that from January 2007 through September 2008, he took $1,004,000 in 95 separate checks and wire transfers from Bricsnet, in addition to his salary. Bricsnet never authorized payment of the $1,004,000 in checks and wires to Jinian and Bricsnet management was not aware that Jinian had taken the money until September 2008. Bricsnet management learned of Jinian’s embezzlement when a former Bricsnet employee brought it to the attention of Bricsnet’s corporate counsel.
 
The sentence was handed down by U.S. District Court Judge Jeffrey S. White. Judge White also sentenced Jinian to a three year period of supervised release during which he will be required to abide by special conditions, including payment of restitution and a prohibition from serving in a fiduciary capacity without prior approval of his probation officer. Jinian was remanded into custody immediately following his sentence.