Former Pittsburgh CEO pleads guilty in mansion tax fraud scheme
PITTSBURGH (KDKA) - A former CEO accused of writing off the construction of his Bell Acres mansion as a business expense pleaded guilty.
Prosecutors announced former Automated Health Systems president and CEO Joseph Nocito Sr. pleaded guilty in front of a judge to one count of conspiracy to defraud the United States.
Prosecutors said Nocito avoided paying about $4 million in personal income taxes by writing off millions of dollars as business expenses while constructing his 39,000-square-foot Bell Acres mansion known as "Villa Noci." He also allegedly tried to write off personal expenses like luxury vehicles and private school tuition for his grandchildren.
Nocito is also accused of avoiding paying about $11 million in corporate tax income by shuffling millions of dollars through his companies and falsely characterizing the transfers as management, administrative or consulting expenses so he'd underreport company profits.
As part of his guilty plea, he agreed to pay $15 million of criminal restitution to the IRS before his sentencing, which is set for March 23.