Former Pittsburgh-based health services company executive pleads guilty in tax evasion scheme | USAO-WDPA

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PITTSBURGH, PA — A former executive of a Pennsylvania health services company has pleaded guilty in federal court to a charge of conspiracy to defraud the United States, U.S. Attorney Cindy K. Chung.

Joseph W. Nocito, 80, of Sewickley, Pa. 15143, pleaded guilty to one count before U.S. Senior District Judge Joy Flowers Conti.

As part of the guilty plea, the court was advised that between 2006 and 2012, Mr. Nocito, as CEO and President of Pittsburgh-based Automated Health Systems, conspired to fraudulently write off millions of dollars in business expenses against other companies he owned, named Palace Development Inc, Nocito Enterprises and Jonnolley Properties in the construction of its 39,000 square Acres single-story Bell House known as “Villa Noci”, including both exterior and interior construction, design and furnishings, an outdoor swimming pool, the landscaping of the grounds and a playground, a tennis court and a pétanque court. Mr. Nocito also fraudulently spent millions of dollars on other personal expenses such as luxury vehicles, personal fitness and private school tuition for grandchildren. The tax consequence of this scheme allowed Mr. Nocito to avoid paying approximately $4 million in personal income tax on his 1,040 personal income tax returns between 2006 and 2012, resulting in the filing of false tax returns. personal and corporate income.

Mr. Nocito also conspired to conceal AHS Inc.’s taxable income by transacting millions of dollars through these companies, and falsely characterized the transfers as management, administrative or advisory expenses, which caused him to significantly under-report the company’s earnings. The tax consequence of concealing corporate income allowed Mr. Nocito to avoid paying approximately $11 million in corporate income tax for the conspiracy period.

As part of the guilty plea, Mr. Nocito agreed to pay criminal restitution to the Internal Revenue Service of $15,824,056 prior to his sentencing date.

Judge Conti set the sentence for March 23, 2023. Date and Time of Conviction The law provides for a total sentence of up to five years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based on the seriousness of the offense and the criminal history, if any, of the defendant.

Pending sentencing, the court upheld the defendant’s bail.

Assistant United States Attorney Gregory C. Melucci is pursuing this case on behalf of the government.

The Internal Revenue Service-Criminal Investigation and the United States Postal Inspection Service conducted the investigation which led to the prosecution of Joseph Nocito.

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