Alden sues its former chief financial officer for embezzlement

[Miles R.]

I looked for a thread dedicated to appreciation of Alden shoes, but could not find one; so I'm posting this in a thread of its own.

Alden Shoe Company sues Bianca de la Garza for $15 million (Boston Globe, 15 June 2020)

Alden Shoe Company, a family-owned footwear firm, has filed a civil lawsuit in Suffolk Superior Court alleging that its former vice president and chief financial officer, Richard Hajjar, embezzled more than $20 million from the company, funneling $15 million of those funds into the TV and fashion businesses of [Bianca] de la Garza, a former news anchor who now runs a beauty business under the name BDG Enterprises. . . .

The court documents indicate that the Middleborough-based company, a New England footwear stalwart founded in 1884, first hired Hajjar as an employee in 1987. According to filings, Hajjar’s father had been the CPA for the father of the company’s current president, Arthur S. Tarlow, Jr., and trust ran deep between the two families. . . .

For the next 30 years, Hajjar acted a “trusted advisor” to the Tarlow family, and eventually rose through the ranks of the company to the role of vice president and corporate secretary, a member of its board of directors, and its chief financial officer. . . .

It was only in October 2019 that the company learned that Hajjar’s opulent offerings had been embezzled from the company’s bank accounts, the filing states. The company, after a forensic accounting investigation, alleges that Hajjar stole more than $20 million from its coffers since 2011.

 

[bry2000]

What I find more shocking than the embezzlement is that you could not find the dedicated Alden thread on SF.

 

[Phileas Fogg]

I guess shell prices will be going up.....again.

 

[SpooPoker]

20 million since 2011, that has to be a bunch of unearthed cigar shell boots somewhere.

 

[Phileas Fogg]

20 million since 2011, that has to be a bunch of unearthed cigar shell boots somewhere.

That strikes me as a bit odd, no? Perhaps a white collar criminal attorney can chime in, but I’m surprised that a family business didn’t notice something amiss during that time.

I mean, I can see perhaps a million over that time, but 20? That’s around 2 millions a year.

 

[Miles R.]

What I find more shocking than the embezzlement is that you could not find the dedicated Alden thread on SF.

I did searches for "Alden" and for "Alden thread" and also looked through several pages of the index for this forum, but found no such thread.

 

[Phileas Fogg]

I did searches for "Alden" and for "Alden thread" and also looked through several pages of the index for this forum, but found no such thread.

even more odd as there is a distinct “non-Alden” shell thread.

 

[mhip]

I did searches for "Alden" and for "Alden thread" and also looked through several pages of the index for this forum, but found no such thread.

Check Hajjar's pockets...

 

[madhat]

I did searches for "Alden" and for "Alden thread" and also looked through several pages of the index for this forum, but found no such thread.

THE OFFICIAL ALDEN THREAD FOR 2020 - SHARE REVIEWS, SIZING, ADVICE, AND PHOTOS.

Alden increases their prices every year to account for increased material and labor costs. I doubt anything will change, and they’ll increase again next January/February as always.

www.styleforum.net

 

[Count de Monet]

If you want to attend the trial, you have to find who has the list, put your name on the list, then wait 10-12 months to see if you get picked.

 

[opiumpipez]

That strikes me as a bit odd, no? Perhaps a white collar criminal attorney can chime in, but I’m surprised that a family business didn’t notice something amiss during that time.

I mean, I can see perhaps a million over that time, but 20? That’s around 2 millions a year.

you def would think the Turlows would have had more control over this but this is the issue with nepotism. furthermore, as large as we think Alden is they are really a family run large-small business. i dont know their annual revenues but as a family business and with only a bank to report to, audits arent that strict and thats the issue. i know they have some debt on their books but its not like they have a 500M loan out for capital improvements. they still run their shop old school and tours arent even given anymore due to OSHA standards. unfortunately i am very familiar with both families and no matter how you slice it no one wins here. Turlows lost a ton of money and trust in a long time friend. Hajjar/Garza names are tarnished forever.

real shame what they are going through

 

[ter1413]

That strikes me as a bit odd, no? Perhaps a white collar criminal attorney can chime in, but I’m surprised that a family business didn’t notice something amiss during that time.

I mean, I can see perhaps a million over that time, but 20? That’s around 2 millions a year.

I'm not.

The dude was with the co for over 30 years and had the trust of the family. Sometimes small(< 300 employees) family run businesses really have no idea about managing the books. That's why they look outside.

One report said that Alden does just under $30 mil/yr. If he kept that number gradually growing over the years, while pocketing what he did, the family would probably be happy.

Loads of ways to make $ disappear. And if the family didn't ask about transferring $ to a trust, it may never have been found out...or al least not for many years.