Artificial Cell Technologies CFO accused of stealing nearly $1m in company funds

A high-ranking C-level executive of a US biotech start-up has been charged with embezzling almost $1 million from the company through a range of means, it has emerged.

48-year-old Thomas Malone, Chief Financial Officer of Artificial Cell Technologies, a Connecticut-based firm which focuses on the development of delivery methods for vaccines for malaria and respiratory syncytial virus, allegedly stole around $950,000 from the company between 2012 and 2016, according to an audit.

He achieved this through a range of underhanded means, including nearly tripling his salary to $660,000 from his authorised limit of $281,000 and using a company credit card to make personal purchases. He also donated company funds to an organisation he personally supported.

If the accusations are found to be true, Malone abused the power of a role which had authority in the management and reporting of investor and grant funds, accounts payable, payroll and credit card and bank account reconciliation. He was presented in Federal Court in New Haven, Connecticut, and released on a $50,000 bond.

As Artificial Cell Technologies is funded in federal research grants and private investment, having received around $4.1 million from the National Institutes of Health since 2008, the crime he is accused of falls under theft of federal funds, an offense that could land him up to 10 years jail time.