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Steven Stambaugh, age 61, of York, has been charged with twenty-six counts of wire fraud, two counts of mail fraud, two counts of tampering with a witness, and one count of obstruction of justice for a COVID-19 scheme, according to United States Attorney Gerard M. Karam explained.
Stambaugh is accused of defrauding the Commonwealth of Pennsylvania "to obtain money through materially false and fraudulent pretenses, representations, and promises," as stated in the release.
Between March 19, 2020 to on or about May 18, 2020, "Stambaugh instructed his employees to file and collect unemployment compensation benefits with the Commonwealth of Pennsylvania during the COVID-19 pandemic, while at the same time directing and requiring his employees to continue working for Stambaugh Law, P.C.," according to the release.
Then Stambaugh used interstate wire communications, as well as the delivery of mail matter via interstate mail deliveries to collect the funds, Karam wrote.
The indictment further alleges that beginning in April 2021 through November 2022, Stambaugh attempted to intimidate and corruptly persuade a government witness to give a false testimony before a federal grand jury and to lie to federal law enforcement officers, according to the release. He also attempted to obstruct justice while serving as a judicial officer for the Pennsylvania Court of Common Pleas for York County.
The charges stem from a joint investigation involving the U.S. Department of Labor – Office of Inspector General and the Federal Bureau of Investigation – Harrisburg.
“An important part of the mission of the Office of Inspector General is to investigate allegations of fraud involving unemployment insurance programs. We will continue to work with the Pennsylvania Department of Labor and Industry and our law enforcement partners to investigate these types of allegations,” stated Syreeta Scott, Special Agent-in-Charge, Mid-Atlantic Region, U.S. Department of Labor, Office of Inspector General.
"As alleged, the defendant orchestrated a scheme that defrauded the Commonwealth of unemployment benefits designed to provide relief amid the COVID-19 pandemic, and to further this fraud, sought to mislead federal investigators," said Wayne A. Jacobs, special agent in charge of FBI Philadelphia. "The FBI will continue to work alongside partners to protect the integrity of these programs, investigate allegations of fraud, and bring those who engage in these schemes to justice."
Under federal law the maximum penalty for mail/wire fraud and witness tampering is 20 years of imprisonment; for obstruction of justice is 10 years of imprisonment and a term of supervised release follows any term of imprisonment and a fine.
Assistant United States Attorneys Michelle Olshefski and Sean Camoni are prosecuting the case.
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