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New Jersey Operator Charged With Embezzling From Company Pension Plan

NEWARK, NJ The Justice Department has charged the owner of CMG Vending Inc. with embezzling $186,123 from the company's pension plan and failing to file an annual report related to the plan. U.S. Attorney Craig Carpenito said Howard Preschel, 62, of Teaneck, NJ, was charged on Oct. 12 with one count of embezzlement from an employee benefit plan and one count of failure to file an annual report. Preschel made his initial appearance before U.S. Magistrate Judge Michael A. Hammer in Newark, N...

November 26, 2018

NEWARK, NJ – The Justice Department has charged the owner of CMG Vending Inc.  with embezzling $186,123 from the company's pension plan and failing to file an annual report related to the plan.
 
U.S. Attorney Craig Carpenito said Howard Preschel, 62, of Teaneck, NJ, was charged on Oct. 12 with one count of embezzlement from an employee benefit plan and one count of failure to file an annual report. Preschel made his initial appearance before U.S. Magistrate Judge Michael A. Hammer in Newark, NJ, federal court and was released on $100,000 unsecured bond.
 
According to documents filed in the 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. Since October 2013, Preschel is charged with embezzling $186,123 from the plan.

To conceal the ongoing embezzlement, Preschel reportedly failed to inform the participants and beneficiaries that insufficient funds were being forwarded to the pension trust, and failed to publish and 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.