John Mazzuto ’70 — the former CEO of automotive chemical company Industrial Enterprises of America, Inc. and a Yale donor — was sentenced to between 1.5 and 4.5 years in prison Tuesday.
The former CEO was part of a $60 million stock fraud scheme, a portion of which was used to make a $1.7 million donation to the Yale baseball program in 2007. According to the Associated Press, Mazzuto entered a secret guilty plea in January 2011 to cooperate with authorities and testify against IEAM’s financial chief, James Margulies. Marguiles was sentenced to seven to 21 years.
“I committed a crime,” Mazzuto said. “It affected everybody around me. Family, friends, colleagues, all that’s been destroyed, and that’s hard.”
Per a January 2011 agreement with IEAM, Yale paid Mazzuto’s former company a $1 million settlement.