Former Ridley tax collector admits fraud

PHILADELPHIA >> Former longtime Ridley Township Tax Collector and Treasurer Rosezanna Czwalina has pleaded guilty to five counts of filing a false tax return for the years 2014 through 2018 and underreporting more than $400,000 in income, federal court documents show.

Czwalina, 69, of Morton, who retired in 2020 after 30 years with the township, entered her guilty pleas before U.S. District Judge Paul Diamond on June 10, according to online court documents.

Defense attorney Eugene Bonner declined to comment.

Czwalina was charged by federal information in the Eastern District of Pennsylvania earlier this year for failing to report income she earned on fees for tax certifications and duplicate tax bills.

According to a plea memorandum filed last week by Assistant U.S. Attorney K.T. Newton, local tax collectors receive three different types of tax fees: tax certifications that serve as proof that a tax bill was paid; duplicate bill fees paid to obtain a replacement or second copy of a tax bill; and interim taxes assessed in the event of new construction or improvements to an existing property or parcel of land.

Czwalina maintained three accounts at Wells Fargo Bank, the memorandum says. These accounts show tax revenue checks made payable to Czwalina, Ridley Township, or a combination of both, were deposited into each of the accounts.

Revenues that Czwalina received from certifications and duplicate bill fees were also deposited into those accounts, according to the memorandum, but remittances paid to Ridley Township only came from one of the accounts.

Czwalina was legally allowed to retain certification and duplicate bill fees for her own personal use, the memorandum says, but she failed to report that income on federal tax returns from 2014 through 2018.

According to the information, Czwalina reported income of $56,522 for 2014; $57,924 for 2015; $88,695 for 2016; $180,719 for 2017; and $91,394 for 2018.

By comparing the amounts deposited versus what was remitted to Ridley Township and reported on her tax bills, prosecutors found Czwalina failed to report an additional $45,286 in 2014; $56,667 in 2015; $72,537 in 2016; $78,188 in 2017; and $150,342 in 2018, for a grand total of $403,022 in unreported income.

Czwalina met with FBI Special Agent A.J. Pelczar and IRS Special Agent Rick Martin in December, according to the memorandum. During that interview, she allegedly admitted that she never reported the duplicate fees or tax certification payments as income on her tax returns and that she never told her accountant about that income.

As part of her plea, Czwalina has agreed to cooperate fully with the IRS, pay restitution of up to $112,846 and file amended tax returns for tax years 2013 to 2019.

Czwalina faces up to 15 years in prison, a $1,250,000 fine, one year of supervised release and a $500 special assessment at sentencing, scheduled for Sept. 23.