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Press Release

Former Corporate Executive Charged in Connection with $30 Million Embezzlement Scheme

For Immediate Release
U.S. Attorney's Office, District of Massachusetts

BOSTON – The former Chief Financial Officer of Alden Shoe Co. was charged today and has agreed to plead guilty in connection with embezzling approximately $30 million from the company as part of a long-running scheme. 

Richard Hajjar, 64, of Duxbury, has agreed to plead guilty to wire fraud, unlawful monetary transactions and filing a false tax return. A plea hearing has not yet been scheduled by the court.

According to the charging document, from at least 2011 through October 2019, when he was terminated by Alden Shoe Co., Hajjar embezzled money by writing checks to himself from company bank accounts and transferring funds from company accounts to his personal accounts and to another individual. In total, Hajjar embezzled approximately $30 million which he used to enrich himself and to buy gifts and luxury travel for others close to him, including private flights to the Caribbean and diamond jewelry.

In addition, between approximately 2014 and 2019, Hajjar failed to report the proceeds of his embezzlement as income on his tax returns, thereby failing to pay approximately $5,112,822 in taxes to the Internal Revenue Service.

The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a $250,000 fine or twice the gross gain/loss, whichever is greater. The charge of unlawful monetary transaction provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000, or twice the value of the criminally derived property. The charge of filing a false tax return provides for a sentence of up to three years in prison, one year of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors. 

Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Ramsey E. Covington, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations made the announcement today. Assistant U.S. Attorneys Mackenzie A. Queenin of Mendell’s Securities, Financial & Cyber Fraud Unit and Carol E. Head of Mendell’s Asset Forfeiture Unit are prosecuting the case.

Updated May 5, 2021

Financial Fraud