Woman convicted in $530K embezzlement case charged with tax evasion

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A Middletown woman who served jail time for embezzling $530,000 from two former employers is facing new federal charges of tax evasion.

Diane M. Fabian, 67, of Middletown, filed tax returns that understated her income from 2011 through 2015, U.S. Attorney David Freed said in a news release.

A criminal information filed July 5 in U.S. district court alleges Fabian evaded paying $45,100 in federal income taxes.

Fabian in 2016 pleaded guilty in Dauphin County Court to 76 counts of forgery, theft and related charges.

She admitted she stole money from two insurance companies by forging company checks and depositing the money into her own account.

She told investigators her gambling addiction fueled the thefts.

Fabian was ordered to serve 11.5 to 23 months in prison, 20 years probation, and to pay restitution.

She was released from prison in January, according to court records.

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