NEWARK, N.J. – A Bergen County man who embezzled funds from his company’s employee benefit plan over an eight-year period was sentenced today to 30 months in prison, U.S. Attorney Craig Carpenito announced.

Howard Preschel, 63, of Teaneck, previously pleaded guilty before U.S. District Court Judge Susan D. Wigenton in Newark federal court to one count of an indictment charging him with embezzling funds from the CMG Vending Inc. Pension Trust Fund.       

According to documents filed in this case and statements made in court:

Preschel served as the sole trustee for the CMG Vending Inc. Pension Trust Fund.  CMG Vending operated, leased, and rented vending machines throughout New Jersey and New York. As the trustee, Preschel, by law, was a fiduciary and therefore required to act solely in the interest of the participants and beneficiaries.

Between November 2010 and April 2018, Preschel embezzled $368,782.66 from the pension trust fund by engaging in 52 separate illegal withdrawals or transfers from various pension trust accounts. As a result of these illegal withdrawals and transfers, the trust fund accounts lost an additional $93,266.98 in interest.

In addition to the prison term, Judge Wigenton sentenced Preschel to three years of supervised release. She also ordered Preschel to make restitution to the CMG Vending Inc. Pension Trust Fund in the amount of $462,049.64. Preschel also agreed to a debarment which prohibits him from acting as a fiduciary on behalf of any employee benefit plan for a period of 13 years.   

U.S. Attorney Carpenito credited special agents of the U.S. Department of Labor, Office of Inspector General, under the direction of Special Agent in Charge Michael Mikulka in Mountainside, and the United States Department of Labor, Employee Benefits Security Administration, under the direction of Acting Regional Director of the New York Regional Office, Thomas Licetti, with the investigation leading to today’s sentencing. 

The government is represented by Assistant U.S. Attorney Thomas S. Kearney of the U.S. Attorney’s Office Criminal Division in Newark.

NEWARK, N.J. – A Bergen County, New Jersey, man today admitted that he embezzled funds from an employee benefit plan, U.S. Attorney Craig Carpenito announced.

Howard Preschel, 63, of Teaneck, New Jersey, pleaded guilty before U.S. District Court Judge Susan D. Wigenton in Newark federal court to one count of an indictment charging him with embezzling funds from the CMG Vending Inc. Pension Trust Fund.       

According to documents filed in this case and statements made in court:

Preschel served as a trustee for the CMG Vending Inc. Pension Trust Fund. CMG Vending operated, leased, and rented vending machines throughout New Jersey and New York.  Preschel was, by law, a fiduciary, and therefore required to act solely in the interest of the participants and beneficiaries.

Between November 2010 and April 2018, Preschel embezzled $368,783 from the trust fund by engaging in 52 separate illegal withdrawals or transfers from various accounts. As a result of these illegal withdrawals and transfers, the trust fund lost an additional $93,267 in interest. As part of the plea agreement, Preschel agreed to make restitution to the trust fund in the amount of $462,050. Preschel also agreed to a debarment which prohibits him from acting as a fiduciary on behalf of any employee benefit plan for a period of 13 years.

The embezzlement count to which Preschel pleaded guilty carries a maximum potential sentence of five years in prison and a fine of $250,000 or twice the gross amount of gain to the defendant or loss to the victim, whichever is greater. Sentencing is scheduled for Nov. 13, 2019.   

U.S. Attorney Carpenito credited special agents of the U.S. Department of Labor, Office of Inspector General, under the direction of Special Agent in Charge Michael Mikulka in Mountainside, and the U.S. Department of Labor, Employee Benefits Security Administration, under the direction of Acting Regional Director Thomas Licetti of the New York Regional Office, with the investigation leading to today’s guilty plea. 

The government is represented by Assistant U.S. Attorney Thomas S. Kearney of the U.S. Attorney’s Office Criminal Division in Newark.

NEWARK, N.J. – The trustee of a pension fund has been indicted for embezzling from an employee benefits plan and failing to file annual reports for the plan, U.S. Attorney Craig Carpenito announced today.

Howard Preschel, 62, of Teaneck, New Jersey, is charged by indictment with 10 counts of embezzlement from an employee benefit plan and three counts of failure to file an annual report. He surrendered on March 12, 2019, and made his initial appearance before U.S. Magistrate Judge James C. Clark III. Preschel was released on $100,000 unsecured bond.

According to documents filed in this case and statements made in court:

Preschel served as a trustee for the CMG Vending Inc. Pension Trust Fund. CMG Vending operated, leased, and rented vending machines throughout New Jersey and New York. Preschel, by law, was a fiduciary and therefore required to act solely in the interest of the participants and beneficiaries. From at least October 2013, Preschel embezzled $186,123 from company’s pension trust fund.

Preschel was also required to publish and file annual reports with the Secretary of Labor. 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.

The embezzlement charges each carry a maximum penalty of five years in prison and a fine of up $250,000. The failure to file an annual report charges each carry a maximum penalty of 10 years in prison and a fine of up to $100,000.

U.S. Attorney Carpenito credited special agents of the U.S. Department of Labor, Office of Inspector General, under the direction of Special Agent in Charge Michael Mikulka; and the U.S. Department of Labor, Employee Benefits Security Administration, under the direction of Acting Regional Director of the New York Regional Office, Thomas Licetti, with the investigation leading to the indictment.

The government is represented by Assistant U.S. Attorney Thomas S. Kearney of the U.S. Attorney’s Office Criminal Division in Newark.

The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

NEWARK, N.J. – A Bergen County, New Jersey, man who served as a trustee of a pension fund was charged with embezzling more than $180,000 from an employee benefit fund, U.S. Attorney Craig Carpenito announced today.

Howard Preschel, 62, of Teaneck, New Jersey, is charged by complaint with one count of embezzlement from an employee benefit plan and one count of failure to file an annual report. He made his initial appearance today before U.S. Magistrate Judge Michael A. Hammer in Newark federal court and was released on $100,000 unsecured bond.

According to documents filed in this case and statements made in court:

Preschel served as a trustee for the CMG Vending Inc. Pension Trust Fund. CMG Vending operated, leased, and rented vending machines throughout New Jersey and New York. Preschel, by law, was a fiduciary and therefore required to act solely in the interest of the participants and beneficiaries of the fund. From at least October 2013, Preschel embezzled $186,123 from the pension trust fund.

Preschel was also required to publish and file annual reports with the Secretary of Labor. 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 a required annual report for the plan.

The embezzlement charge carries a maximum penalty of five years in prison. The failure to file an annual report charge carries a maximum penalty of 10 years in prison.

U.S. Attorney Carpenito credited special agents of the U.S. Department of Labor, Office of Inspector General, under the direction of Special Agent in Charge Michael Mikulka, and the U.S. Department of Labor, Employee Benefits Security Administration, under the direction of Thomas Licetti, Acting Regional Director of the New York Regional Office, with the investigation.

The government is represented by Assistant U.S. Attorney Thomas S. Kearney of the Criminal Division in Newark.

The charges and allegations in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

Defense counsel: Howard Miller Esq., Hackensack, New Jersey