Kenneth J PedrolI, Conspiracy to Commit Mail and Wire Fraud, New York 2019

A Long Island businessman has admitted to a multi-year scheme that ripped off an Illinois-based electronics supplier for more than $3 million. Kenneth J. PedrolI, 60, of Stony Brook, New York, pleaded guilty today in federal court in New Haven to one count of conspiracy to commit mail and wire fraud, capping a three-year fraud operation that exploited internal vulnerabilities at the victim company.

PedrolI, who operated a business in Islandia, New York, conspired with a corrupt employee inside the Illinois company—referred to in court documents as “Company A”—to manipulate pricing and payment systems. Between February 2015 and December 2018, he placed orders for high-value electronic components at a fraction of the company’s published rates, all under instructions from the insider who helped conceal the fraudulent transactions.

Once orders were processed at the artificially low prices, the goods were shipped directly to PedrolI. But the fraud didn’t stop there. He was directed to pay only a portion of the invoiced amount—and to send those payments straight to the Company A employee, not the company itself. Those diverted payments, funneled through personal accounts, allowed both men to siphon off hundreds of thousands in illicit gains over time.

The total loss to Company A exceeds $3 million, according to federal prosecutors. The scheme unraveled after internal audits and shipping discrepancies raised red flags, prompting a referral to federal authorities. The Federal Bureau of Investigation launched an investigation that eventually traced the illicit flow of goods and payments back to PedrolI and his co-conspirator.

U.S. District Judge Janet C. Hall, presiding in New Haven, has scheduled sentencing for July 22, 2019. PedrolI faces a maximum prison term of 20 years on the single count to which he pleaded guilty. He remains free on a $500,000 bond while awaiting sentencing, a decision that has drawn quiet criticism from legal observers given the scale of the fraud.

The case is being prosecuted by Assistant U.S. Attorney Ray Miller. As federal investigators continue to probe the full network behind the fraud, authorities warn that insider-enabled corporate theft remains a growing threat—especially in industries reliant on high-value component supply chains. PedrolI’s guilty plea marks a rare public crack in a type of fraud often hidden in plain sight.

Related Federal Cases