CINCINNATI — Michael E. Peppel, the former chief executive identified by federal authorities as the leader of an accounting fraud that led to MCSi Inc.’s 2003 collapse, faces a potential prison term of eight to 10 years when he is sentenced Monday in federal court.

The case has dragged on through two presidential administrations and three federal judges during battles over pretrial issues and while Peppel changed defense teams.

Peppel, 44, was originally indicted in December 2006. He avoided trial by pleading guilty in August 2010 to willful false certification of a financial report by a corporate officer, money laundering and conspiracy to commit securities, mail and wire fraud.

The government charged that Peppel, former president and chief executive officer of the Kettering-based computer and audiovisual equipment supplier, led a criminal scheme to inflate and falsely report the company’s revenues and financial performance. The copany’s collapse into bankruptcy and ultimate liquidation cost about 1,300 employees their jobs, stock and retirement income. Shareholders were left holding worthless stock in what had been a growing, publicly traded company.

Peppel’s lawyers have asked U.S. District Judge Sandra Beckwith to consider sentencing him to probation and home confinement or “at worst, a short term of imprisonment.” Beckwith concluded two months ago that a prison term of eight to 10 years would be appropriate, given Peppel’s crimes and the resulting financial losses.

The defense contended in court filings that Peppel supports five children, his mother and a brother; has done charity work, and advises employees of HealthWarehouse.com, a retail mail-order pharmacy company based in the Cincinnati area, that “all of the company’s activities must be conducted with the utmost respect for the law.”

Former MCSi employees and investors told the Dayton Daily News, however, that Peppel deserves stiff punishment for causing substantial financial harm to employees and shareholders. They said his sentencing has been delayed for too long.

“His deception — in my opinion, based on greed — is appalling and pathetic,” Dave Criner of Fairborn, who said he lost a $7,000 investment years ago in MCSi, wrote in an email. “It is unfortunate that investors that were duped by this individual will not see any return of their investment.”

Rob Salomon, now a retired entrepreneur living in Wyoming, said he sold his computer supply business to MCSi for stock and cash in 2000.

“Employees of my company had shared in the proceeds of the sale to MCSi.

It was their reward for the years and contributions they had made,” Salomon wrote in an email. “Most, if not all, had those proceeds wiped out.”

Libby Hayes, a former corporate director of human resources at MCSi, said she tried to assist a management group that lenders installed in a futile effort to save the failing company.

“It was a difficult time, having to release so many employees including my own staff,” Hayes wrote. “They received no severance, vacation pay or health care continuation coverage options.”

Peppel agreed to forfeit money and property, including his former Washington Twp. home in Montgomery County, to the government.

He moved his family in May to a house in the upscale Cincinnati suburb of Indian Hill.

Ira H. Stanley, 59, MCSi’s former chief financial officer, pleaded guilty in July 2007 to mail fraud; conspiracy to commit mail fraud, wire fraud and securities fraud, and false certification of a financial report by a corporate officer. He awaits sentencing Nov. 9 in Cincinnati by the same judge who will sentence Peppel. Stanley and Peppel have remained free on bond.

If the judge sentences Peppel to prison, she could order him handcuffed and turned over to federal marshals immediately after sentencing.

Or, she could grant a defense request to allow him to remain free for 30 to 45 days and voluntarily report to whichever prison that the Federal Bureau of Prisons designates for him.

Contact this reporter at jnolan @DaytonDailyNews.com.