Former Starkey Executive Who Pleaded Guilty to Conspiracy Ordered to Forfeit Assets

Scott Nelson Photo: File photo
Scott Nelson

January 08, 2018 07:49 PM

A former Starkey Laboratories Inc. executive who pleaded guilty to one count of conspiracy last month in U.S. District Court has been ordered to forfeit multiple assets, including all funds and holdings in an investment account valued at $1,264,266.38, court records show.

Scott Nelson was among those accused of conspiring to embezzle from Starkey and Sonion from 2006 to September of 2015. Starkey is a hearing aid manufacturer, and Sonion is a major supplier of hearing aid components. Charges were first filed in September of 2016, and a new indictment in January of 2017 charged both Nelson and former Starkey president Jerry Ruzicka with tax fraud as well.

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RELATED: Former Starkey Executive Pleads Guilty to 1 Count of Conspiracy

In all, Nelson had faced three counts of mail fraud, two counts of wire fraud, one count of transactions involving fund proceeds, one count of making and subscribing a false tax return and one count of willfully aiding and assisting the preparation and presentation of a false income tax return.

But as part of an agreement, he pleaded guilty to just the conspiracy count in federal court in downtown Minneapolis. Nelson could now face up to five years in prison. As part of the plea deal he cut with the U.S. Attorney's Office, he's also agreed to testify against his alleged co-conspirators.

RELATED: New Indictment Reduces Number of Charges For Some Accused of Stealing From Starkey

Court records show he has been ordered to forfeit all funds and holdings in the Edward Jones account, as well as a Lincoln National Life Insurance Company policy. The preliminary order of forfeiture also assesses a personal money judgment forfeiture of $585,000, though a SunLife Assurance Company Policy will be allowed to be forfeited to partially satisfy that amount.

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Frank Rajkowski

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