Ex-Starkey Labs president gets 7 years prison for stealing
Updated: 5:45 p.m. | Posted: 4:20 p.m.
A federal judge Wednesday sentenced former Starkey Laboratories president Jerry Ruzicka to seven years in prison for stealing millions of dollars from the Twin Cities hearing aid company.
In March, a jury in Minneapolis found Ruzicka guilty on eight fraud counts.
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Prosecutors said he and other executives set up a complex web of sham companies to siphon more than $16 million from Starkey and its founder Bill Austin. The men also awarded themselves restricted stock in Starkey's retail affiliate.
The seven-year sentence is much less than the 15 to 20 years the government requested.
"With the sentencing today and others to come, we are thankful to be nearing the conclusion of this matter," said Thomas Ting, General Counsel for Starkey Hearing Technologies. "We are continuing to focus on the bright future of our business."
Jurors found Ruzicka's co-defendant Jeffrey Taylor guilty on three counts. Taylor is scheduled to be sentenced Thursday along with Scott Nelson and Jeffrey Longtain, who pleaded guilty to one count each.
Two others charged in the scheme were acquitted.