Ex-Industrial Enterprises CEO, Yale Donor Admits to Fraud
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John D. Mazzuto, the former chief executive officer of Industrial Enterprises of America Inc., secretly pleaded guilty to his role in a $60 million stock fraud at the seller of automotive chemicals.
Mazzuto admitted in New York state court to committing two counts of grand larceny, a scheme to defraud and a violation of general business law, according to the Jan. 14 plea agreement made public last week. He agreed to cooperate and is testifying against James W. Margulies, an Ohio attorney who served as Industrial Enterprises’ counsel, chief financial officer and, briefly, CEO. Margulies is now on trial.