FTE Networks Inc. CEO Sentenced to 12 Years in Prison for Fraud

Sept. 25, 2025, 9:34 PM UTC

The former chairman and CEO of FTE Networks Inc., was sentenced Thursday to 12 years in prison on securities and wire fraud charges.

Judge Colleen McMahon also sentenced Michael Palleschi to three years of supervised release and ordered him to pay more than $13.5 million in restitution and to forfeit nearly $547,000.

McMahon said FTE “was a fraudulently run operation from the beginning,” according to a press release issued by the US Attorney’s Office for the Southern District of New York.

Palleschi pleaded guilty in 2023 to conspiring to commit securities and wire fraud, making false statements in SEC filings, ...

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