Pleasantville Businessman Accused Of Stealing Clients' Withholding Taxes: DA

PLEASANTVILLE, NY — A Pleasantville man is accused of stealing about $300,000 in withholding taxes from his business clients. Stefan Malgarinos used at least some of the money, prosecutors allege, to pay personal expenses like his mortgage. He bilked businesses in Elmsford, Hawthorne, Stamford and the Bronx, they said.

Malgarinos was arraigned on a felony complaint Thursday in Pleasantville village court and charged with:

• two counts of Grand Larceny in the Second Degree, class “C” Felonies,
• two counts of Grand Larceny in the Third Degree, class “D” Felonies,
• one count of Falsifying Business Records in the First Degree, a class “E” Felony,
• one count of Scheme to Defraud in the First Degree, a class “E” Felony.

Malgarinos, 47, is the owner of Manos Business Management in Pleasantville. His company was hired by businesses to file withholding tax returns, to pay the withholding taxes collected from employees, and to remit unemployment insurance premiums to both state and federal tax and labor authorities.

So, Malgarinos collected money from businesses that hired him and was responsible for sending payments on behalf of those clients to state and federal tax authorities.

In fact, he collected the full amount due from his clients and used it for himself, Westchester County District Attorney Anthony A. Scarpino, Jr. alleged Thursday.

In one case, he filed one company's third-quarter return to the IRS and told his client he had mailed with it the $35,000 in employee withholding taxes for the quarter. He had in fact sent it in without any payment. In another case, he actually sent a client a copy of a check for its employees' withholding taxes written to the IRS — but then re-deposited the check into his personal account, Scarpino said.

Four companies were cheated, according to Scarpino:

Specifically, the defendant received in excess of $35,000 from the CT/NY Lighting Company located in
Stamford, Connecticut and represented to the bookkeeper of CT/NY Lighting Company,that funds were
remitted to the Internal Revenue Service for the third Quarter of 2012. The return was actually filed by
the defendant on behalf of CT/NY Lighting Company with the Internal Revenue Service on October 31,
2012 without any payment of the employment taxes due.

The defendant also received in excess of $150,000 from Mid Bronx Haulage, Corp., located in the Bronx, which was meant to pay the quarterly tax payments due for the fourth quarter of 2013 and the first and fourth quarters of 2014. Defendant provided to the office manager of Mid-Bronx Haulage, a copy of the Employer’s Quarterly Federal Tax Return for the fourth quarter of 2013 which reflected a zero balance due and represented that this form was the one filed with the Internal Revenue Service when it had not been. As further proof that payment was made, defendant also presented a copy of] the front of a check which was written to the Internal Revenue Service for the benefit of Mid Bronx Haulage on his company’s account. The check was actually never sent. It was later re-deposited into defendant’s personal account.

In 2015, defendant also received approximately $22,000 from Gordo’s restaurant, located in Hawthorne, which was supposed to be remitted by defendant to the Internal Revenue Service on its behalf, but defendant instead sent $2,820.45 instead and used the remainder of the funds to pay his mortgage and other personal expenses while representing full payment had been made.

That same year, the defendant also received in excess of $107,000 from Blueline Tactical Supply and Shooting Sports, located in Elmsford, to be used to pay the company’s tax obligations, but defendant remitted only $17,690.48 to authorities and used the remaining $89,532.84 without permission or authority.

Malgarinos pleaded not guilty. His bail was set at $5,000 cash over $5,000 bond. His next court date is Oct. 24, 2017.

If convicted, he faces up to 15 years in state prison.

The case is being prosecuted by Assistant District Attorney Nicole Gamble of the Economic Crime Bureau.