East Haven Man Admits Role in Scheme to Defraud Illinois Company
John H. Durham, United States Attorney for the District of Connecticut, announced that JOHN T. FINKLE III, 57, of, East Haven, pleaded guilty today before U.S. District Judge Janet C. Hall in New Haven to one count of conspiracy to commit mail and wire fraud related to a scheme to defraud an Illinois-based company.
According to court documents and statements made in court, Finkle was employed by an Illinois-based supplier of electronic components (“Company A”). Between approximately February 2015 and December 2018, Finkle conspired with Kenneth Pedroli to defraud Company A through a scheme involving purchases of electronic components that Pedroli made from Company A for a business he operated in Islandia, New York. As part of the scheme, Finkle instructed Pedroli to place his orders and list prices at a fraction of Company A’s published prices. After Pedroli’s orders were submitted to Company A at the discounted prices, the products were shipped from Company A to Pedroli. Finkle instructed Pedroli to pay only a portion of the invoiced price and to make the payments directly to Finkle, which Pedroli did. Finkle deposited the payments into his personal checking account and provided a portion of the funds to another Company A employee who manipulated the accounting records of Company A to make it appear that Pedroli had paid Company A for the products he received.
The government contends that Company A was defrauded of more than $3 million through this scheme.
Judge Hall scheduled sentencing for October 8, 2019, at which time Finkle faces a maximum term of imprisonment of 20 years.
Finkle is released on a $500,000 bond pending sentencing.
Pedroli, of Stony Brook, New York, pleaded guilty to the same offense on April 29, 2019, and awaits sentencing.
This investigation is being conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Ray Miller.