Real estate developer pleads guilty to fraud and failure to pay over taxes
Charles M. Oberly III, United States Attorney for the District of Delaware, has announced that Michael A. Stortini, the managing member of the Frank Robino Companies LLC, a real estate development company in Wilmington, pleaded guilty Oct. 24 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 more than $600,000 in funds from an employee 401k account to pay business expenses associated with the company. Moreover, in 2009 and 2010, Stortini failed to pay more than $450,000 in payroll taxes to the Internal Revenue Service for entities related to FRC. Over the same time period, Stortini transferred more than $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, contact Public Information Officer Kimberlynn Reeves at 302-573-6277, Ext. 16287.