Pennsburg man admits embezzling $2.7 million

“Russo stole millions by abusing his trusted position with his former employer.”

— U.S. Attorney William M. McSwain

A Pennsburg man admitted to embezzling nearly $3 million from his former employer in Lancaster during a scheme that federal prosecutors said abused “his trusted position.”

Steven J. Russo, 43, pleaded guilty in U.S. District Court this week to charges of wire fraud and filing false tax returns in connection with embezzling $2.79 million from his former employer between November 2013 and October 2018 while he served as the director of information technology. The Lancaster business for which Russo worked was not identified by federal authorities.

Russo entered the guilty plea before U.S.

District Court Judge Jeffrey L. Schmehl. Russo faces up to a maximum of 23 years in prison as well as restitution when he’s sentenced later this year.

“The U.S. Attorney’s Office takes offenses like embezzlement and tax fraud very seriously. Russo stole millions by abusing his trusted position with his former employer,” U.S. Attorney William M. McSwain said after Russo entered his guilty plea on Thursday. “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.”

With the charges, federal prosecutors alleged Russo used his access to his former employer’s lines of credit and credit cards to make unearned payments to companies owned and controlled by him, and to purchase items that he kept for his

personal use or sold for his personal gain.

Russo allegedly also caused his former employer to issue checks to the companies he owned

and controlled, and to make payments via PayPal to an account he controlled. Russo reported his taxable income for 2017 as only $18,579, when in reality his taxable income was nearly $1 million, prosecutors alleged.

“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 in Charge Thomas Fattorusso. “His admission of guilt (Thursday) underscores our commitment to

protecting the integrity of the tax system by ensuring that everyone pays their fair share of taxes.”

The case was investigated by IRS-Criminal Investigations, and is being prosecuted by Assistant U.S. Attorney Bea Witzleben.