Mitchell Kurlander and Alan Abeshaus today in Newark pleaded guilty to conspiracy charges filed in 2011.
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Federal agents raid Circle System Group's two main buildings, a facility on Bushkill Street in Easton and offices on McFadden Drive in the Palmer Industrial Park in Palmer Township, in May 2007.
Two former executives of an Easton area company that reconditioned football helmets and other gear have pleaded guilty to swindling dozens of schools in 12 states.
Former Circle System Group Chief Financial Officer Mitchell Kurlander, 54, of South Whitehall Township, and his father-in-law and former CEO Alan Abeshaus, 81, a former Palmer Township resident who lives in Highland Beach, Fla., pleaded guilty today in Newark to one count of conspiracy to commit wire fraud and mail fraud.
The count carries a maximum prison sentence of 20 years, but federal prosecutors said they will not oppose a motion that could keep the 81-year-old Abeshaus out of prison. Kurlander faces between 41 and 51 months in prison under terms of his plea agreement.
Abeshaus said in court he would pay restitution of $1 million; the U.S. attorney’s office said the amount of Kurlander’s restitution is to be determined.
They allegedly duped schools to pay invoices twice, created fake price quotes from competitors and inflated invoices to reimburse themselves for money given to school charities. They also were accused of showering school officials with gifts.
Prosecutors say schools were swindled in New Jersey, Pennsylvania, Delaware, New York, Maryland, Virginia, Tennessee, North Carolina, South Carolina, Georgia, Florida and Michigan.
In New Jersey alone, 22 high schools and the school districts of Newark and Jersey City were affected along with Rutgers and Monmouth universities, according to the indictment.
Former Circle President David Drill and two New Jersey high school officials who previously pleaded guilty in connection to the scheme are awaiting sentencing.
Schutt Sports Inc. bought Circle System in 2005 and ran it out of the Palmer Township facility.
