(WJET/WFXP/YourErie.com) — The vice president of a Johnstown-area company that provides housing to individuals with intellectual disabilities, along with another employee, have pleaded guilty to two counts each of violating federal tax, fraud and money laundering laws.
Sarah Stiles, 38, and David Bachik, 52, of Northern Cambria, PA, both worked for Life Changing Support Services (LCSS) in Northern Cambria, with Stiles serving as VP of the company.
According to a release from the U.S. Attorney’s Office for the Western District of PA, Stiles admitted to willfully failing to account for and pay $2,063,544 in employment taxes between March 2013 and December 2019.
In connection with the guilty plea, Stiles willfully failed to truthfully account for and pay $21,284.89 in payroll taxes for LCSS employees to the IRS during the business quarter ending in December 2019.
Stiles and Bachik also agreed to commit wire fraud from around August 2, 2019, to February 26, 2020, under the belief that Stiles was not paid fairly compared to other LCSS employees and officers after she was removed as a signature authority from LCSS bank accounts.
Under this belief, the two reportedly created a system where Stiles would direct payments from LCSS to Stonewall Business Management, a fake company controlled by Bachik, and Bachik would disperse the monies to Stiles and himself.
During this time, Stiles reportedly misled LCSS into issuing 12 cashier’s checks for workers’ compensation and general liability insurance totaling $56,308.10 to Stonewall Business Management, which Bachik deposited into bank accounts in the name of Stonewall Business Management between July 3, 2019, to February 28, 2020.
Additionally, Bachik is also accused of withdrawing $9,000 in LCSS funds from a Stonewall Business Management account on or around August 14, 2019.
Sentencing is set to take place on December 6, 2023, with a maximum total sentence of 20 years in prison, a fine of up to $500,000, or both.
The Internal Revenue Service, Federal Bureau of Investigation, Pennsylvania State Police and Pennsylvania Office of the Attorney General conducted the investigation that led to the successful prosecutions of Stiles and Bachik.
