John Comito, of the South Beach-based AutoExec Computer Systems Inc., provided inadequate or no technological services to 26 schools in the Diocese of Brooklyn, said officials.
STATEN ISLAND, N.Y. — The head of a South Beach-based technology company who bilked a federal program serving disadvantaged kids in Brooklyn Catholic schools, must shell out nearly $900,000 in restitution, forfeiture and a fine.
But the good news for John Comito is he’s not going to jail.
Comito, 69, was sentenced Wednesday in Brooklyn federal court to five years’ probation in addition to the monetary penalties for wire fraud.
The defendant, the chief executive officer of AutoExec Computer Systems Inc., was busted in December 2019.
In announcing his arrest, authorities accused Comito of two counts of mail fraud and one count of wire fraud with respect to the E-rate program.
The program distributes money to schools and libraries serving impoverished kids to buy telecommunications services, Internet access and related equipment, said authorities.
The E-rate program defrays approved costs by up to 90 percent, said authorities.
To qualify, educational institutions must certify that they are purchasing equipment and services from a private vendor.
Between 2013 and 2017, AutoExec contracted with 26 elementary, middle and high schools in the Diocese of Brooklyn to provide telecommunication services and equipment, officials said.
At least eight schools received no equipment or services, said authorities.
The other 18 schools received partial, substandard or non-approved equipment and services, officials said.
Comito pleaded guilty to wire fraud last September.
He told the judge then he had “neglected to supply schools with some of the equipment they were supposed to get.”
Comito said he submitted an invoice in October 2015, in which he falsely claimed his company had provided certain Internet services and equipment to schools under the program.
Brooklyn federal prosecutors said the company illegally obtained $433,000.
Comito personally profited to the tune of $133,240, said prosecutors.
“I wish to express to the court how sorry I am for my conduct,” Comito said at his plea hearing.
Public records indicate AutoExec is located on Sand Lane.
Those records also show addresses for Comito in the Mid-Island.
In a sentencing memorandum, Assistant U.S. Attorneys Philip Pilmar and Francisco J. Navarro requested a jail sentence of no more than 27 months.
They also sought a fine of over $1 million and restitution of more than $505,000.
“Despite his privileged financial circumstances, the defendant still chose to defraud the government and economically-disadvantaged schools out of hundreds of thousands of dollars of needed equipment for the education of children,” they wrote.
Defense lawyers Michael F. Bachner and Howard Weiner asked the court to follow the Probation Department’s recommendation of a non-custodial sentence.
They cited Comito’s lack of a criminal history and his “negligible risk” for recidivism.
The attorneys also highlighted numerous letters of support for their client submitted by priests, nuns and the heads of several schools.
“John’s misconduct in this case is but a small part of who he is, and the crime committed in this case is an aberration in the otherwise law-abiding and altruistic life of this 69-year-old father, husband, friend and colleague,” wrote the attorneys.
Under the sentence, Comito must pay restitution of $505,403, plus a $250,000 fine.
He has already forfeited nearly $133,240.
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