Alex Molinaroli, Johnson Controls chairman and chief executive officer, is seen at the Johnson Controls headquarters. Credit: Mike De Sisti

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Johnson Controls CEO Alex Molinaroli made the sales pitch that prompted a fellow executive to buy into what turned out to be a massive Ponzi scheme and became a go-between for the since-convicted scammer when the investment did not pay off as promised.

Allen Martin, a former Johnson Controls executive, testified that, at the urging of Molinaroli — who had been his boss — he invested $150,000 with Joseph Zada, who was sentenced last month to more than 17 1/2years in federal prison for running the scheme that cost investors more than $37 million. Retired National Hockey League great Sergei Federov was Zada's biggest victim.

Molinaroli made the pitch to Martin in February 2009 — about five months before Federov and other Zada victims began filing lawsuits against Zada.

Molinaroli "called me and said, 'Hey, first thing, do you have any cash laying around to invest in something?" Martin testified, according to a transcript of the federal court hearing in West Palm Beach, Fla. "And he explained the opportunity to invest with Joseph Zada."

In earlier depositions and an interview with the Journal Sentinel, Molinaroli said he was introduced in 2006 to Zada — who played the role of a jet-setting multimillionaire — by his stepson. Zada's bankruptcy court records show that Molinaroli and his stepson each invested about $2.5 million in the scheme.

Shortly afterward Molinaroli began bankrolling Zada's lifestyle, footing the bill for Zada's lawyers, buying a Michigan mansion and allowing Zada to live there rent free, paying to fly him around the world and even wiring hundreds of thousands of dollars to strangers, according to records in various court cases.

Molinaroli told Martin that "he had invested with Zada several times and had some good luck and good success, and that there was another opportunity coming up, and it was oil related ... and that we'd get our investment back within a couple of weeks."

In an October interview with the Journal Sentinel Molinaroli said his investment with Zada never produced a return. "I never have received any money," Molinaroli said at the time.

Martin testified that after talking to his wife, who "wasn't thrilled" but supported the investment, Molinaroli gave Martin a phone number to reach Zada, who lived in Florida and Michigan.

Zada told Martin he "had an oil-type investment opportunity with a 50% return" to be paid in two weeks, Martin testified. He said he invested $150,000 in February 2009.

Molinaroli declined to comment Wednesday. "He has not talked about this since the fall," said Fraser Engerman, Johnson Controls spokesman.

Johnson Controls' board of directors hired a law firm last fall that investigated the situation and found no wrongdoing by Molinaroli in his involvement with Zada. Molinaroli has maintained that his personal financial dealings haven't had a bearing on his work running Wisconsin's largest company.

Martin's investment was first reported by the Journal Sentinel in October. Martin held numerous management positions at Johnson Controls, leaving the company in 2013 after about 29 years.

Molinaroli was named CEO of the Fortune 100 company in 2013. Johnson Controls is a $37 billion company that makes car batteries and seats as well as building heating and cooling equipment. Last week, it announced it had reached a deal to merge with Tyco International.

Martin testified that Molinaroli served as a go-between with Zada when his investment failed to materialize. "Joe (Zada) was a little harder to get a hold of, so I ended up talking to Alex (Molinaroli) a little bit more," Martin said.

Molinaroli assured Martin that although Zada was sometimes "a little slow, a little late... he's always gotten his money."

In fact, Martin said, Molinaroli told him that Zada had said that "based on the delay, there would be an additional 10%, or an additional $15,000," paid to Martin.

In 2009, Martin testified, Zada sent him two checks for $225,000 each, but was told not to cash them until further notice. Each check was sent to him through Molinaroli, he said.

Martin testified that he was never given permission to cash the checks and he tried to cash them.

He did, however, eventually get his principal back when Molinaroli sent him three unsolicited check for $50,000 each in 2013, 2014 and 2015.