Stone was fired from JKP after the company filed for bankruptcy in August 2005. Penthouse subsequently bought JKP’s assets for $1.7 million at a bankruptcy court auction in April 2005.
Shortly following his ousting from JKP, Stone landed at Ronco, a company founded by infomercial star Ron Popeil. Ronco owes its creditors $32.7 million and is looking to sell its assets. The company appealed to the U.S. Bankruptcy Court in Woodland Hills, Calif., for protection against its creditors.
Former Ronco CEO Richard Allen said in court papers that Stone’s salary should not be paid until a “full investigation” is conducted into Stone’s alleged shady dealings. According to court documents, Stone didn’t tell his employers that he’d been accused of embezzlement and that his CPA license was taken away.
Ronco said that it would not stop salary payments to Stone despite allegations by employees that he was involved in credit-card fraud and interfering with the investigation, Allen said in court papers.
Company founder Popeil is owed $11.7 million since selling the business in June 2005 for $56 million.
Jill Kelly was unavailable for comment at press time.
