MINNEAPOLIS (AP) — Federal prosecutors in Minnesota have charged five people, including three former executives of Starkey Laboratories, with stealing more than $20 million from the hearing aid company.
U.S. Attorney Andrew Luger says the five defendants controlled "sham companies and dummy entities" to siphon money from the Eden Prairie company. Federal charges range from mail and wire fraud to conspiring to launder money.
Starkey's president, chief financial officer and human resources executive were fired last year and are among the five facing charges. Prosecutors say false payroll reports were created to hide the embezzlement from Starkey owner William Austin.
Starkey is one of the world's largest hearing aid manufacturers. Many of its 5,000 employees work in Eden Prairie.