Employee Embezzles $2.5 Million from Karen Kane Clothing Company
A former employee of the California-based apparel brand Karen Kane has been charged with embezzling over $2.5 million from the family-owned business over the course of ten years.
As the credit and accounting manager at Karen Kane, Donna Faye Bui, 45, allegedly siphoned off $2,562,941 from the company’s bank accounts, transferring the funds to herself through a series of smaller, laundered transactions, as stated by the Los Angeles County District Attorney’s Office.
Bui was employed by Karen Kane from September 2015 to February 2024. She was responsible for handling bill payments for the business, as reported in a news release by the district attorney’s office on Wednesday, September 2 here.
Facing a total of 106 felony charges linked to the alleged theft, which involved numerous illegal transactions, Bui’s case is being prosecuted.
The charges include 89 counts of money laundering, 10 counts of grand theft, five counts of submitting false tax returns, a count of failing to file a tax return, and a count of unauthorized computer access, according to the district attorney’s office.
“Stealing millions of dollars from your employer as a trusted employee for over a decade is a cruel and calculating criminal deception,” remarked Los Angeles County District Attorney Nathan J. Hochman. “White collar criminals who exploit positions of trust for personal gain pose a genuine threat to public safety and endanger anyone or any company with an electronic bank account.”
On Thursday, September 3, Karen Kane did not respond immediately to a request for comment from Us.
Founded in 1979 by fashion designer Karen Kane and her husband, Lonnie, the company began in their garage, according to Women’s Wear Daily. The business is now headquartered in Vernon, located about five miles south of Los Angeles.
During the decade in which Bui reportedly embezzled funds from the company, she attempted to conceal her theft through various money laundering operations, the district attorney’s office noted. Additionally, Bui allegedly neglected to report the stolen funds to tax authorities.
The situation came to light when a new president of the company became “suspicious” and initiated an audit of the finances in February 2024, leading to the revelation of Bui’s alleged fraudulent activities, according to prosecutors.
Bui pleaded not guilty to the charges against her during an arraignment on August 26, as the district attorney’s office indicated.
She has been released from custody on her own recognizance after her bail was set at $0. Prosecutors, however, opposed her release and requested bail of $875,000, but the court ruled she was not a danger to the public.
Bui is scheduled to appear in court for a preliminary hearing on October 19.
Details regarding her legal representation were not immediately available.
