East Haven Man Sentenced to 2 Years in Prison for Role in Scheme That Defrauded Illinois Company of Millions
John H. Durham, United States Attorney for the District of Connecticut, announced that JOHN T. FINKLE III, 58, of, East Haven, was sentenced today by U.S. District Judge Janet C. Hall in New Haven to 24 months of imprisonment, followed by three years of supervised release, for his role in a scheme to defraud an Illinois-based company of more than $3 million.
According to court documents and statements made in court, Finkle was employed by JST, a supplier of electronic components based in Waukegan, Illinois. Between approximately February 2015 and December 2018, Finkle conspired with Kenneth Pedroli to defraud JST through a scheme involving purchases of electronic components that Pedroli made from JST 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 JST’s published prices. After Pedroli’s orders were submitted to JST at the discounted prices, the products were shipped from JST 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 JST employee who manipulated the accounting records of JST to make it appear that Pedroli had paid JST for the products he received.
JST was defrauded of $3,359,058.69 through this scheme. Judge Hall ordered Finkle to make full restitution.
Finkle, who is released on a $500,000 bond, is required to report to prison on January 8, 2020.
On July 16, 2019, Finkle pleaded guilty to one count of conspiracy to commit mail and wire fraud.
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.