Former Michigan Pharma CFO Sentenced for Falsifying Loan Documents, Causing $1.3M Loss

Ex-Chief Financial Officer Theodore Toloff sentenced to over a year in prison for submitting false financial documents in connection with $60 million credit line.

Northville Executive Sentenced for Deceptive Loan Practices

In a case highlighting corporate fraud, Theodore Toloff, 65, a former Chief Financial Officer of the now-defunct Frank W. Kerr Company, was sentenced to one year and one day in federal prison for submitting falsified financial documents to secure additional funding under a $60 million credit agreement. Toloff, a Northville resident, will also serve two years of supervised release and pay $1.3 million in restitution to the financial institutions he defrauded.

The sentencing was announced by U.S. Attorney Dawn N. Ison, who emphasized that “corporate executives should be held to the same standard of honesty as anyone else.” Toloff’s fraudulent submissions included $18 million in ineligible accounts receivable, which misled lenders and allowed Kerr to borrow additional funds under false pretenses.

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