PHILADELPHIA (WHTM) – U.S. Attorney William McSwain announced on Thursday that a Montgomery man pleaded guilty to embezzling $2.79 million from his former company in Lancaster.
Steven Russo of Pennsburg admitted to committing wire fraud and filing false tax returns during his tenure as a Director of Information Technology from November 2013 until October 2018.
McSwain said Russo, 43, used his access to the company’s credit cards, checks, and PayPal to make payments to companies owned by him, in addition to purchasing items for personal use or resell.
He also reported that his taxable income for 2017 was only $18,579, despite it actually being close to $1 million.
“The U.S. Attorney’s Office takes offenses like embezzlement and tax fraud very seriously,” McSwain said in a release. “Russo stole millions by abusing his trusted position with his former employer. My Office will continue to work with our law enforcement partners to protect innocent businesses and taxpayers from being victimized by this type of fraud.”
Russo faces up to 23 years in prison, as well as restitution, fines, supervised release, and special assessments.
“Not only did Mr. Russo steal millions of dollars from his employer, he also stole from the government and the American people when he decided to shirk his tax obligations,” said IRS-Criminal Investigations special agent Thomas Fattorusso. “His admission of guilt today underscores our commitment to protecting the integrity of the tax system by ensuring that everyone pays their fair share of taxes.”
This case was investigated by IRS-Criminal Investigations and is being prosecuted by Assistant U.S. Attorney Bea Witzleben.