Michael Vergato, 52, and Mark Perlstein, 60, have been sentenced to federal prison for their roles in a scheme that defrauded a Colorado-based data management company of nearly $2 million. The United States Attorney’s Office for the District of Colorado announced that Vergato received a 46-month sentence and a $20,000 fine. Perlstein was sentenced to 25 months in prison and fined $15,000.
Perlstein pleaded guilty to wire fraud in June 2025. Vergato was convicted on six counts of wire fraud after a six-day trial in May 2025. Both men were ordered to pay restitution totaling $1,949,023 and will serve three years of supervised release following their prison terms.
Court documents show that between 2013 and 2020, Vergato worked as vice president at Arrow Electronics, where he oversaw performance tuning for Oracle EBS databases managed by Perlstein’s company. Together they created Oracle Performance Tuning and Optimization, LLC (OPTO), a shell company posing as a legitimate contractor. OPTO submitted 21 fraudulent contracts and invoices for services never performed. Perlstein approved the invoices as CEO and authorized payments to OPTO.
The fraudulent activity funneled nearly $2 million into OPTO. The two men divided the proceeds while hiding their involvement through personal email accounts, other corporate entities, and fake identities. Vergato used his stepdaughter’s identity to conduct business on behalf of OPTO. Testimony from the current CEO of the data management company indicated there was no evidence any work had been performed by OPTO or that it employed any staff or contractors. Tax records showed OPTO paid no salaries or issued contractor forms.
Vergato kept approximately $874,000 from the scheme for personal expenses including luxury vehicles, credit card payments, retirement accounts, and rent. Perlstein received more than $1 million.
“These defendants’ greed has earned each of them years in federal prison, and they have to pay back every dollar they took,” said United States Attorney Peter McNeilly. “Corporate fraud of this magnitude undermines confidence in our business community and harms employees, customers, and shareholders alike. These sentences send a clear message: executives who abuse their authority for personal gain will be held accountable.”
“These two individuals plotted to defraud their companies of nearly $2 million, falsifying work that was never requested nor performed,” said FBI Denver Special Agent in Charge Mark Michalek. “They lined their own pockets until their fraudulent scheme was uncovered, and now they will pay the consequences.”
United States District Judge Nina Y. Wang presided over sentencing. The Federal Bureau of Investigation conducted the investigation with prosecution by Assistant United States Attorneys Nicole Cassidy, Bradley Giles, and Bob Brown.
Case Number: 1:23-cr-00302-NYW
