Schutt Reconditioning has taken extensive steps to make sure the types of activities cannot and will not occur again, the company said in a statement.
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Federal agents raided 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.
Schutt Sports Inc. purchased Circle Systems in 2005 and still reconditions sports equipment at Circle System's former McFadden Road facility in the Palmer Industrial Park in Palmer Township.
Circle System, which refurbished football helmets and other sports equipment, also operated a facility on Bushkill Street in Easton.
Mitchell Kurlander, Circle System’s former chief financial officer, and his father-in-law, Alan Abeshaus, of Highland Beach, Fla., each pleaded guilty in federal court in Newark to one count of conspiracy to commit wire fraud and mail fraud. Circle System forged fake price quotes from competitors and inflated invoices to recoup money it had donated to schools’ fundraising and charity efforts, Kurlander admitted.
“While these guilty pleas close a chapter in the history of Circle Systems, this trial and these verdicts really have nothing to do with Schutt Reconditioning," Schutt said in a statement today. "The offenses took place in the 1980s and '90s and Schutt Reconditioning divested itself completely of the people who committed these crimes years ago.
"We've made sure to learn from the mistakes of others, resulting in the formation of Schutt Reconditioning -- the most transparent and advanced reconditioning company in the industry. Now operated by a new ownership group, Schutt Reconditioning has taken extensive steps to make sure these types of activities cannot and will not occur again.
"The employees who have remained dedicated to restoring the reputation of Schutt Reconditioning have been vindicated by these verdicts.”
Kurlander and Abeshaus were arrested in 2011 and charged in a 22-count indictment. Their trial was to have begun Tuesday.
The conspiracy 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, formerly of Palmer Township, 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 amount of Kurlander’s restitution is to be determined, the office of New Jersey District U.S. Attorney Paul J. Fishman said.
Former Circle Group President David Drill and two New Jersey high school officials who previously pleaded guilty in connection to the scheme await sentencing.