Westchester County District Attorney Anthony Scarpino, Jr. announced on Thursday that 47-year-old Pleasantville resident Stefan Malgarinos has been arraigned on a felony complaint charging him with multiple counts of grand larceny.
Scarpino said that Malgarinos is the owner of Manos Business Management in Hawthorne, and he was hired by businesses in the tri-state area to file withholding tax returns, to pay withholding taxes collected from employees and to remit unemployment insurance premiums to both state and federal tax and labor authorities.
According to Scarpino, Malgarinos collected the full amount due from his clients, but failed to remit the entire amount collected to authorities, using the funds he failed to remit instead for his personal use without the knowledge or permission and authority of his clients.
In 2012, Malgarinos allegedly received more than $35,000 from CT/NY Lighting Company in Stamford, telling the bookkeeper he remitted the funds to the IRS, though he did so without any payment of the employment taxes that were due, instead hanging on to that money.
Malgarinos allegedly received more than $150,000 from Mid Bronx Haulage in 2014, which was meant to pay quarterly taxes, showing officials at the company a copy of the Employer’s Quarterly Federal Tax Return that reflected a zero balance, though the copy was fraudulent and one was never filed. Malgarinos also falsified a check from his company account that was presented to the company, which was never actually sent. Instead, the money was later re-deposited into Malgarinos’ personal account.
Scarpino said that the following year, he allegedly received $22,000 from Gordo’s restaurant in Hawthorne, but only sent $2,820.45 to the IRS, using the rest of the funds to pay his mortgage and other personal expenses. Malgarinos also allegedly used nearly $90,000 from Blueline Tactical Supply and Shooting Sports in Elmsford for personal use, rather than paying that company’s tax obligations.
Malgarinos was charged with two counts of second-degree grand larceny, two counts of third-degree grand larceny, one count of falsifying business records and one count of scheming to defraud. He pleaded not guilty in court on Thursday.
Bail for Malgarinos was set at $5,000 cash over $5,000 bond. He is due back in court on Oct. 24 to answer the charges. Malgarinos faces up to 15 years in state prison if found guilty.
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