East Haven School Official Helped Defraud Company Of $1.5M: Feds

EAST HAVEN, CT — John T. Finkle III, 57, of East Haven, who is a member of the local Board of Education, has been indicted by a grand jury for his role in defrauding an Illinois-based company of more than $1.5 million, federal authorities announced Friday.

Also charged in the scheme are Steven C. Gold, 46, of Pleasant Prairie, Wisconsin and Kenneth J. Pedroli, 59, of Stony Brook, New York, officials said. The grand jury returned a seven-count indictment alleging all three men operated a scheme that defrauded an Illinois-based company of more than $1.5 million.

The indictment was returned on Feb. 13, and Finkle surrendered to law enforcement Friday. He entered a plea of not guilty to the charges, and was released on a $500,000 bond secured by his East Haven residence and a rental property in East Haven owned by his wife, federal authorities said. Gold and Pedroli will be arraigned later.

Finkle and Gold were employed by an Illinois-based supplier of electronic components, identified in the indictment as “Company A,” federal officials said in a news release. Finkle was primarily employed in sales for the company and Gold operated the accounting and billing systems for the company, officials said. Pedroli purchased electronic components from Company A for a business he operated in Islandia, New York, officials said.

The indictment alleges that between February 2015 and December 2018, Finkle, Gold and Pedroli defrauded Company A through a scheme involving purchases that Pedroli made from the company, officials said in a news release.

As part of the scheme, Finkle instructed Pedroli to place his orders and list prices at a fraction of Company A’s published prices, federal authorities say. After Finkle submitted Pedroli’s orders 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, officials said in a news release. Pedroli then wrote checks to Finkle, which Finkle deposited into his personal bank account, officials said.

Finkle also instructed Gold to apply fictitious credits to the invoices in order to reduce the amount of money Pedroli owed Company A, according to the news release. Finkle then wrote checks to Gold, which Gold deposited into his personal bank account, officials said.

It is alleged that Company A was defrauded of more than $1.5 million, and that Finkle profited more than $500,000, through this scheme, officials said.

The indictment charges each defendant with one count of conspiracy to commit mail and wire fraud. The indictment also charges Finkle with two counts of wire fraud, Gold with two counts of wire fraud, and Pedroli with two counts of mail fraud.