The owner of a Pleasantville payroll processing firm was sentenced to up to six years in prison Wednesday for stealing withholding tax money collected from his clients that should have been forwarded to the state and federal governments.
Stefan Malgarinos, owner of Manos Business Management, was also ordered by County Court Judge Michael Martinelli to pay restitution totaling more than $285,000 to five companies that hired the firm to file withholding taxes.
Malgarinos was sentenced to concurrent terms of two to six years in state prison for second-degree grand larceny, a Class C felony, and one to three years for first-degree scheme to defraud charge, a Class E felony. He had pleaded guilty to those two charges in February.
According to the Westchester County district attorney’s office, Malgarinos’ firm was hired by businesses to file the returns, pay withholding taxes collected from employees and remit unemployment insurance premiums to the appropriate state and federal authorities.
From Oct. 1, 2012, to Dec. 16, 2015, Malgarinos collected the full amount of taxes but failed to remit the entire amount and used the funds for himself without the knowledge or permission of his clients, authorities stated.
He admitted in his guilty plea earlier this year that in 2015 he received more than $107,000 from Blueline Tactical Supply and Shooting Sports in Elmsford to pay the company’s tax obligations but remitted only $17,690.48. He then used $87,732.84 without permission, the district attorney’s office said.
Malgarinos must pay restitution to Blueline Tactical; $108,880 to Mid-Bronx Haulage; $71,680 to Barrier Contracting LLC; $17,204 to South of the Border; and $2,000 to The Sinon Group.