An Orange man was sentenced Wednesday to 57 months in prison for defrauding a company out of more than $2.5 million and forcing it to go out of business, costing about 40 people their jobs.
Deirdre M. Daly, U.S. attorney for the District of Connecticut sent out a press release detailing the case history of Edward Petrucci, 58, of Orange, who pleaded guilty to one count of wire fraud and one count of mail fraud in November 2013.
Petrucci operated Womco Insulation, Inc., Incor Group, Inc., D & N Insulation Company and Petco Insulation Company, all of which were West Haven-based companies that performed construction services, mechanical insulation and asbestos removal in large-scale building projects in Connecticut, New York, Massachusetts and Florida, according to the release.
In 2006, shortly after being released from federal prison for filing false corporate and personal tax returns and evading payment of more than $1 million in federal income taxes, Petrucci started doing business with Platinum Funding Services, LLC, a New York factoring company that provided funding to client companies, the release said. Petrucci was previously unable to secure funding from a bank.
At the beginning of the business relationship, Platinum regularly purchased Petrucci’s invoices from legitimate insulation jobs throughout the state and collected them without issue. From December 2007 to April 2009, however, Petrucci defrauded Platinum by causing his companies to sell invoices to Platinum that he knew were fake, and were for work that his companies had not performed or would not perform in the future, the release said.
Petrucci’s companies received more than $2.5 million from Platinum during the scheme, the release said.
The scheme forced Platinum out of business.
Petrucci is ordered to pay restitution in the amount of $2,979,972.53. His prison sentence will be followed by three years of supervised release.