John Jerome, 45-year-old New Yorker who runs Jerome Records, a label that has released albums of such respected Broadway and cabaret artists as Karen Mason, Jeff Harnar, Phillip Officer and Heather MacRae, was arrested Jan. 14 for allegedly embezzling $3 million from his day job, The New York Post and Daily News reported.

Although the dailies didn't indicate it, John Loan — charged with grand larceny in the first degree for allegedly billing Alliance Capital since 1998 for services that he apparently never provided as their banquet manager — is known in the New York cabaret community as John Jerome, who runs Jerome Records, sources told Playbill On-Line. The label's motto is "you're going to be surprised."

The label's list of past or attached artists (according to its website, www.jeromerecords.com) includes Steven Brinberg, Julie Wilson, Jessica Molaskey, Stephanie Pope, Laurie Krauz, Mary Testa, Anna Bergman and more.

Police are investigating what Loan allegedly did with the money, and The Daily News and The Post cited sources who said the money may have supported Loan's dying lover or been donated to charitable organizations.

An internal audit at the Manhattan investment firm raised red flags that led to Loan's arrest. Jerome Records' mission, according to the website is "preserving the work of promising young artists as well as theatre and cabaret veterans. Words and music mean nothing without passion. Jerome Records Inc. is dedicated to artists, and audiences, who honor that truth."

— By Kenneth Jones