Ex-CFO Admits Embezzling Millions From Englewood Company

ENGLEWOOD, N.J. - The former chief financial officer of an Englewood business pleaded guilty Wednesday to federal tax evasion and wire fraud charges.

Gomidas Garabed Hartounian, 52, of Franklin Lakes, admitted to U.S. District Judge Peter G. Sheridan he embezzled millions of dollars from the family-run company.

As part of the plea, he agreed to forfeit $3.5 million of the proceeds he obtained as a result of the scheme.

From April 2007 to April 2014, Hartounian was the chief financial officer of Harco Industries Inc. The company distributed merchandise for companies' incentive, loyalty, rewards, and gift programs.

Hartounian was also the sole owner of MGB LLC, a company registered to his residence.

Hartounian fraudulently disignated MGB as a vendor company in Harco's accounting system without disclosing the fact that he controlled the business and told employees to issue checks to MGB for freight services it allegedly provided.

When asked for MGB invoices, Hartounian claimed that he was maintaining them in his office.

Because Hartounian did not have the authority to sign checks, he forged the chief executive officer's and chief operating officer's signatures on the checks before depositing them into bank accounts he controlled. Hartounian also had checks issued directly from Harco's bank accounts to pay for his personal expenses, including his Franklin Lakes property tax bill for $6,562 in August 2011.

Hartounian also admitted that he filed a false tax return for the 2012 calendar year and failed to report the $1.29 million in income he received as MGB's only owner. Instead, he falsely reported his 2012 income as just $133,290.

Hartounian faces up to 20 years in prison on the wire fraud charge and five years on the tax evasion charge.

Sentencing is set for Aug. 16.