$1 Million Embezzlement Plea By Former New Haven Biotech CFO

NEW HAVEN, CT — The former chief financial officer of Artificial Cell Technologies pleaded guilty to embezzling $1 million from the company.

Thomas Malone, 49, made the plea in U.S. District court. The small biotech company is working on developing better ways to deliver malaria and Respiratory Syncytial Virus vaccines to affected populations. ACT received about $4.1 million in grants from the National Institutes of Health.

The ACT CEO discovered that Malone was paying himself a $660,000 annual salary in November 2016, which is above his listed $281,000 salary. The CEO discovered Malone had written checks to himself disguised as bonuses and gave himself additional salary payments, according to the U.S. Attorney District of Connecticut office. He also used a company credit card for personal expenses and made donations from company funds to charities he supported.

Malone leaded guilty to four counts of theft from a program involving federal funds, which carries a maximum term of imprisonment of 10 years on each count. He also agreed to pay more than $1 million in restitution.

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