Date: May 28, 2020
PITTSBURGH – A married couple from Butler County, Pennsylvania, has pleaded guilty to federal fraud and tax charges.
Stephanie J. Roskovski of Butler, PA pleaded guilty on May 27, 2020, to one count of mail fraud and one count of filing a false income tax return. Scott A. Roskovski also of Butler, PA pleaded guilty today to one count of filing a false income tax return and one count of submitting a false loan application to a bank. Both defendants entered guilty pleas before United States District Court Judge William S. Stickman IV.
According to information provided to the court, from April 2011 through December 2017, Stephanie Roskovski, while serving as the Chief Operating Officer for Butler Health System (BHS), embezzled in excess of $1.3 million from her employer. She used her corporate credit card to make personal purchases that she disguised as business expenses, submitted falsified reimbursement requests claiming purchases she made on a personal credit card were for business, and obtained hundreds of merchant gift cards worth more than $350,000, falsely claiming they were for distribution to "focus groups" or physicians, and which she used for purely personal purposes.
During that time, Stephanie's husband, Scott Roskovski, was employed as a detective with the Butler County District Attorney's Office. Ironically, he investigated financial crimes including theft and fraud. The defendants spent most of the stolen funds on lavish vacations, renovations to their home, and the purchase and operation of a motocross track, "Switchback MX LLC", located in Butler County. The defendants failed to report the fraud proceeds as income on their annual income tax returns jointly filed with the Internal Revenue Service. Additionally, after the couple lost their respective jobs, the defendants submitted a materially false loan application to S&T Bank to refinance the Switchback business and to purchase a bulldozer. S&T Bank extended two loans, the first for $1,128,227, and the second for $55,384, based upon the false information.
The court was advised that the total loss resulting from the mail fraud scheme perpetrated against BHS is approximately $1,331,884, and the total tax loss to the IRS is approximately $397,342.
"All income is taxable, including money that someone embezzles from their employer", said Thomas Fattorusso, Special Agent in Charge of IRS-Criminal Investigation. "These are serious violations and the Special Agents of IRS-CI will investigate and pursue charges against anyone committing these types of crimes."
"The FBI takes our responsibility to investigate and pursue those who commit fraud for personal gain very seriously," said FBI Pittsburgh Special Agent in Charge Mike Christman. "Fraud and dishonesty undermine the integrity of our health care system and cost taxpayers money. This couple thought they would live a lavish lifestyle with other people's money. It's even more concerning that a now former law enforcement detective, sworn to uphold the law, perpetrated the very crimes he was also investigating."
"When the defendants used their positions of trust to steal from a healthcare provider and financial institutions to selfishly enhance their lifestyle and to fund the operation of a family business while utilizing the U.S. Mail to facilitate this fraud; the Postal Inspection Service and their law enforcement partners will devote the resources necessary to conduct a thorough investigation and bring them to justice," said Acting Inspector in Charge James Giehl.
"The Roskovskis' crimes truly shock the conscience," said U.S. Attorney Brady. "Both were in positions critical to the health and safety of their community, as COO of Butler Health System and a Butler County Detective investigating financial crimes. Instead of $1.3 million being available to Butler hospital for patient care, the Roskovskis used the embezzled money for their own personal spending spree, with lavish vacations, home renovations and even a 70-acre motocross business. Once trusted employees, today they are convicted felons. We will continue to aggressively prosecute anyone who seeks to steal and defraud."
Judge Stickman scheduled sentencing for Stephanie Roskovski for October 5, 2020, at 10:30 a.m. and for Scott Roskovski for October 6, 2020, at 10:30 a.m. As to the mail fraud conviction, the law provides for a maximum total sentence of 20 years' imprisonment and a fine of $250,000 or twice the gross pecuniary gain. As to the filing of a false statement on a loan application conviction, the law provides for a maximum total sentence of 30 years' imprisonment and a fine of $250,000 or twice the gross pecuniary gain. As to the filing of a false income tax return conviction, the law provides for a maximum of three years' imprisonment and a fine of $250,000 or twice the gross pecuniary gain. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
The Internal Revenue Service, Criminal Investigation, the U.S. Postal Inspection Service, and the Federal Bureau of Investigation conducted the investigation leading to the charges in this case.