Nearly $1 Million Embezzled By New Haven CFO: U.S. Attorney

NEW HAVEN, CT — A city man was arrested by federal authorities after he embezzled nearly $1 million from a biotech company, according to the U.S. Attorney District of Connecticut office.

Thomas Malone, 48, is free on a $50,000 bond. He was the chief financial officer of Artificial Cell Technologies Inc., a small biotech company in the city that is working to better deliver malaria and other vaccines.

ACT received $4.1 million in grants from the National Institutes for Health since 2008.

The company's CEO discovered Malone was paying himself $660,000 in annual salary, far above his stated salary of $281,000, according to the U.S. Attorney's office. The CEO also discovered Malone had written checks for years disguised as bonuses and had used a company credit card for personal purchases.

Malone is charged with theft from a program involving federal funds, an offense that carries a maximum term of imprisonment of 10 years.

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