Ex-health insurance CFO gets prison time for embezzling $631k

The former CFO of Soundpath Health, a health insurance company based in Federal Way, Wash., was sentenced Friday to a year and a day in prison for embezzling funds from the insurer, according to the Department of Justice.

According to court records, Zachary Smulski began serving as Soundpath's CFO in September 2008. He began a leaseback program in 2011 to improve Soundpath's cash reserves and allegedly embezzled $631,500 through the program to fund a start-up company he was developing. Mr. Smulski concealed the embezzlement using fake accounting documents, according to the DOJ.

In April 2012, Soundpath's comptroller confronted Mr. Smulski about missing paperwork regarding the leaseback arrangement. Shortly thereafter, Mr. Smulski provided the missing paperwork and returned the $631,500 to Soundpath, according to court documents. On April 24, 2012, he resigned as Soundpath's CFO.

Mr. Smulski pleaded guilty to three counts of wire fraud on March 29.

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