Former CEO of MCSi, Inc. Pleads Guilty to Securities Fraud
On August 11, former CEO of MCSi, Inc., Michael E. Peppel, pled guilty in federal district court to one count each of securities fraud, conspiracy, and money laundering, according to a Press Release by the Department of Justice. Peppel's criminal activities were part of a scheme to inflate the company's stock price by improperly reporting company revenues.
Originally founded in Dayton, Ohio in 1981 as Miami Computer Supply Corporation, MCSi, Inc. served more than 50,000 corporate, governmental, medical, educational, and institutional clients as the nation's largest computer technology and visual communications reseller. It became a public company in 1996 and was listed on the NASDAQ stock exchange until 2003 when it filed for bankruptcy. Two years before, in 2001, the company's annual sales had exceeded $810 million, according to the DOJ.
In 2007, MCSi's CFO, Ira H. Stanley, Jr., pled guilty to criminal charges, including conspiracy to commit securities fraud and false certification of a financial report by a corporate officer. He is currently awaiting sentencing.
Peppel, whose trial was set to begin on August 11, has agreed to pay full
restitution to the victims of his offense. He faces up to 50 years in
prison. His sentencing date has not yet been set.