ALBANY, NEW YORK – John R. Paeglow III, age 65, of Troy, New York, was sentenced today to three years of supervised release, and to perform 100 hours of community service, in connection with a scheme to defraud a commercial finance company that provided receipt factoring services to his former book printing business.
The announcement was made by United States Attorney Carla B. Freedman; Jonathan Mellone, Special Agent in Charge, New York Region, U.S. Department of Labor, Office of Inspector General (USDOL-OIG); and New York State Police (NYSP) Superintendent Kevin P. Bruen.
As part of his previously entered guilty plea, Paeglow admitted that, between October and December 2014, he fraudulently solicited and received over $400,000 on behalf of his now-closed Castleton, New York-based book printing business Integrated Book Technology, Inc./Hamilton Printing (“IBT/Hamilton”), by orchestrating the submission of fraudulent invoices and forged shipping documents to a New Jersey-based commercial finance company in order to obtain the funds in exchange for the sale of books that, in fact, had not been sold or shipped.
Senior United States District Judge Frederick J. Scullin, Jr. also ordered Paeglow to pay restitution of $220,000 to the victim finance company, and a further $11,410 to reimburse the union that represented the IBT/Hamilton employees whose health care premiums Paeglow was also charged with embezzling.
This case was jointly investigated by U.S. DoL-OIG and the NYSP Financial Crimes Unit, and was prosecuted by Assistant U.S. Attorney Emmet J. O’Hanlon.