Crime & Safety

Former Employee of Clayton-based Toy Maker Sentenced For Embezzlement

Former controller of Cepia, maker of Zhu Zhu Pets, embezzled $500,000 from his former employer.

A former employee of a Clayton-based toy company was sentenced to 20 months in prison after he pled guilty to embezzling $500,000 from his employer.

Joseph B. Van Gronigen, 41, of Hillsboro, worked for Cepia LLC from September 2007 to January 2010. He worked as a controller for the company beginning in 2008, when his duties included accounts receivables, billing and invoicing, cash receipts and accounts payable. 

Van Gronigen pled guilty last January to one felony count of mail fraud and appeared for sentencing Thursday.

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He embezzled about $500,000 from Cepia from September 2007 through January 2010 for his own use and to pay his own expenses, according to a news release from the U.S. Attorney’s office.

Cepia is the maker of Zhu Zhu Pets, Zhu Zhu Babies, Zhu Zhu Puppies and other toys. It has made full-length movies and cartoon series based on its toys.

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In addition to his prison sentence, U.S. District Court Judge Rodney W. Sippel ordered Van Gronigen pay $500,000 in restitution.


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