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Howard Preschel, 63, founded and served as the trustee for the pension fund established by CMG Vending Inc., which operated, leased, and rented vending machines throughout New Jersey and New York, U.S. Attorney Craig Carpenito said.
He began skimming the money from the fund as early as November 2010, and by April 2018 had embezzled $368,783, "by engaging in 52 separate illegal withdrawals or transfers from various accounts," Carpenito said.
The fund lost an additional $93,267 in interest because of the illegal funds and transfers, the U.S. attorney added.
"In order to conceal the ongoing embezzlement, Preschel failed to inform the participants and beneficiaries that insufficient funds were being forwarded to the pension trust and failed to file required annual reports for the plan,” Carpenito said.
As part of a plea deal with the government, Preschel agreed to pay $462,050 in restitution to the trust fund, the U.S. attorney said.
He also agreed to a debarment that "prohibits him from acting as a fiduciary on behalf of any employee benefit plan for a period of 13 years," Carpenito said.
U.S. District Court Judge Susan D. Wigenton scheduled sentencing for Nov. 13.
Carpenito credited special agents of the federal Department of Labor Office of Inspector General and the U.S. Department of Labor Employee Benefits Security Administration with the investigation leading to an indictment and plea deal secured by Assistant U.S. Attorney Thomas S. Kearney of his Criminal Division in Newark.
CMG Vending – along with its principals, Howard and Laurence Preschel – agreed in June 2018 to settle a lawsuit filed in federal court in the Southern District of New York by the Amusement And Music Owners Association of New York for using copyrighted material without paying for it, records show.
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