Man to be sentenced in embezzlement scheme

On Behalf of | Jan 21, 2020 | Embezzlement, Firm News

A New York man who owned several nursing home and rehabilitation facilities entered a guilty plea to multiple charges in a Bridgeport federal court. The 71-year-old acknowledged that he stole $4.1 million from the Bridgeport Health Care Center pension plan between 2011 and 2018. He was the trustee of the pension plan, and the money was diverted to a charity that the defendant ran called Em Kol Chai. Money was also diverted directly to the defendant as well as other associates.

Authorities claim that Bridgeport Health Care Center, or BHCC, and another property that the man owned failed to pay employment taxes owed. The government claims that it lost approximately $4.35 million because the company did not pay its share of employment taxes. It also did not send funds withheld from employee’s paychecks to cover their share of FICA dues. The owner of BHCC will repay both the pension plan and the IRS as part of his plea agreement.

Furthermore, he could be sentenced to up to 20 years in federal prison as a result of the plea deal. He pleaded guilty to one count of willful failure to pay tax and two counts of theft and embezzlement. The defendant will be sentenced on April 8, and he is currently free after posting a $500,000 bond.

Individuals who are charged with misappropriating funds or other financial crimes may benefit from hiring an attorney. This might make it easier to earn an acquittal at trial or negotiate a plea deal at some point during the legal process. It may be possible to have evidence suppressed or to cast doubt on evidence that is used in a trial. An attorney might argue that evidence was obtained by coercion or obtained in exchange for something of value to the person who provided it.