North Carolina Executive Charged With Stealing Over $5 Million From German Health Tech Company

Corporate executive Hugh Franklin Johnson II pleaded guilty Monday in Wake County, North Carolina, to embezzling nearly $5.9 million from German-based microplate reader company BMG Labtech.

Johnson, 44, pleaded guilty to eight counts of obtaining property by false pretense. He faces up to 16 years in prison.

The News & Observer reported that Johnson's company credit card purchases from 2012 to 2017 included stays at the Trump International Hotel in New York, massive church donations and $145,000 spent at a steakhouse. Other purchases included luxury trips to Cancun and $25,000 birthday celebrations.

Court records noted that Johnson owned three homes in Wake County and up to five vehicles. Johnson reportedly made 333 unauthorized wire transfers.

The trial was described as "quite possibly the biggest embezzlement case in Wake County history."

The company noticed issues with its bank statements and discovered that Johnson was manipulating records in order to hide his theft.

After Johnson's arrest in February, BMG Labtech issued a statement that the company was "shocked at this incident. As we work to address it, we want to assure our clients and customers that the financial health of our company remains strong."

BMG Labtech, which is headquartered in Ortenberg, Germany, manufactures microplate readers which are used to analyze biological or chemical samples that have been stored on microtiter plates. The company was established in 1990, with all of its microplate readers constructed at its German facility.

The company also has a sales and distributor network in other countries, such as the U.S., U.K., Australia, Japan and France.