Real Estate Developer Pleads Guilty To ERISA Fraud And Failure To Pay Over Taxes
WILMINGTON, Del. – Charles M. Oberly, III, United States Attorney for the District of Delaware announced that Michael A. Stortini – the managing member of the Frank Robino Companies, LLC, (“FRC”) a real estate development company in Wilmington, Delaware – pleaded guilty yesterday before United States District Court Judge Richard G. Andrews to charges of Theft from an Employee Pension Benefit Plan and Willful Failure to Pay Over Tax. Sentencing has been scheduled for March 11, 2014.
From facts disclosed at the plea hearing, in 2009, Stortini diverted over $600,000 in funds from an employee 401(k) account to pay business expenses associated with the company. Moreover, in 2009 and 2010, Stortini failed to pay over $450,000 in payroll taxes to the Internal Revenue Service for entities related to FRC. Over the same time period, Stortini transferred over $900,000 from company accounts for his personal use.
This case was investigated by IRS, Criminal Investigation and the United States Department of Labor, Office of the Inspector General, and prosecuted by Assistant United States Attorney Shawn A. Weede. For further information, please contact Public Information Officer Kimberlynn Reeves at (302) 573-6277, ext. 16287.