Former execs at Pittsburgh-based company plead not guilty in NYC to $60M stock scheme
By APWednesday, May 26, 2010
Pittsburgh execs charged in NY with looting $60M
NEW YORK — Two former automotive-chemical CEOs are charged in New York with looting more than $60 million from their company.
The former executives at Industrial Enterprises of America Inc. pleaded not guilty Tuesday to grand larceny and other charges. They’re accused of issuing stock to friends and relatives and scheming to pump up the share price.
John D. Mazzuto and short-time successor James Margulies left Industrial Enterprises in 2008.
Prosecutors say Mazzuto concocted phony business records, misled investors and otherwise maneuvered to drain money from the Pittsburgh-based company.
They say he spent it on such luxuries as a $2.5 million home in Palm Beach Gardens, Fla.
Securities and Exchange Commission and court records show the company filed for bankruptcy last year.
