|Artificial Cell Technologies Inc., CFO has been indicted for embezzlement from the company.|
NEW HAVEN: The chief financial officer of Artificial Cell Technologies Inc, .a Science Park based biotech receiving federal research grants was charged with embezzling nearly $1 million from the company. Thomas Malone of New Haven was arraigned before United States Magistrate Judge Sarah A. L. Merriam and was released on a $50,000 bond.
ACT is developing malaria and respiratory syncytial virus vaccines, the company reportedly has nine employees and has received funding from private investors and approximately $4.1 million in SBIR grants from the National Institutes of Health since 2008.
As CFO, Malone was responsible for handling all company funds and disbursements. Malone’s salary was $281,00 but company CEO Dr. Donald S. Masters has alleged that in November of 2016, he discovered that Malone had been taking $660,000 in salary compensation
The complaint against Malone says he was making disbursements disguised as bonuses and using the company’s credit card for personal expenses. According to the charges a forensic audit concluded that Malone had embezzled roughly $950,000 from the company between 2012 and 2016.
Malone is a co-founder and former CEO of the company a report in the New Haven Independent website said Malone claims he had authority to set his own compensation. According to information from his linked in profile, Malone had a Physics degree from Georgia Tech and one in Economics from Georgia State and an MBA in General Management and Finance from the University of Chicago.