Tabor Academy received $1.52 million in stock from John Mazzuto, and they
even named their Mazzuto Math Wing after him. Tabor's headmaster praised
Mazzuto, and said, "Appreciate is probably not a strong enough term
because it is probably impossible for me to measure all that has gone
into the creation of this gift." Yale University, too, received a
generous gift of $1.7 million in stock from Mazzuto. A few others schools
also received gifts of stock.
Unfortunately, Mazzuto recently pleaded guilty in a $110 million
securities fraud case and will be sentenced next month. His New York-based Industrial Enterprises
of America (IEAM) has already filed for bankruptcy and settled.
Mazzuto, along with partner James Margulies, allegedly dealt in illegally
issued employee stock options. According to court documents, Mazzuto and
Marguiles were using a "pump and dump" scheme with IEAM's
stock via accounting fraud and were also "printing money". This
allowed them to keep the company's stock high, while they took freely
from the company to fund personal expenses and lavish gifts.
Yale University has already returned $1 million in stock, but Tabor Academy
is still fighting to keep the Mazzuto stock. None of the schools affected
were in any way aware of Mazzuto's alleged securities fraud.
securities fraud attorneys with David P. Meyer & Associates represent victims of securities fraud
stockbroker mediation, arbitration, and litigation claims.