A Westchester County businessman has admitted to lining his own pockets with thousands of dollars as part of a scheme to steal business taxes from clients that employed his services.
Pleasantville resident Stefan Malgarinos, 48, has pleaded guilty to grand larceny and scheme to defraud, both felonies, related to stealing withholding tax money from state and federal authorities collected from his clients.
Malgarinos, the owner of Manos Business Management in Pleasantville, 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 Westchester County District Attorney Anthony Scarpino, Jr., Malgarinos collected the full amount due from his clients, but failed to send 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 his plea, Malgarinos admitted to receiving more than $107,000 from Blueline Tactical Supply and Shooting Sports in Elmsford to pay for the company's tax obligations. Of that money, he only sent $17,690.48 to authorities and used $87,732.84 for personal uses without permission.
The Pleasantville resident 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.
Malgarinos also admitted to defrauding Barrier Contracting in Tarrytown; South of the Border Restaurant in Ossining; and The Sinon Group in Armonk. As part of his plea, Malgarinos will also pay a total of $287,496.84 in restitution to the five businesses.
Malgarinos is scheduled to be sentenced on July 10.
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