A Pennsylvania businessman convicted earlier this year of a $15 million fraud scheme involving a mega-mansion has asked for his sentence to be reduced.
Joseph Nocito, the former CEO and president of Pittsburgh-based Automated Health Systems (AHS), was sentenced to one year in prison in September for fraud.
The 81-year-old managed to illegally classify $15 million in personal expenses as deductible business expenses and finance the construction of a 51,000-foot-tall mansion.
Nocito was allowed to remain free on bail after his conviction and is due to report to the Federal Medical Center in Lexington, Kentucky, on January 22.
In a court filing seen by Trib Live, his attorney has requested that Nocito be placed under house arrest under electronic monitoring.
Joseph Nocito, pictured here, was sentenced to one year in prison in September for fraud
The 81-year-old managed to illegally classify $15 million in personal expenses as deductible business expenses and finance the construction of a $51,000 home
Nocito's request also included the fact that he would serve the dish at another, smaller residence away from his opulent mansion, where he had previously employed a butler.
Attorney Philip DiLucente also asked District Judge Joy Flowers Conti to consider implementing new sentencing guidelines that will take effect in Nocito next February.
The policy change provides for a downward adjustment for defendants who have no criminal record, which would also apply to his client.
DiLucente asked Conti to delay a report due on Nocito until after February if policies change.
In response to Nocito's request, the government provided a brief response to the request.
Assistant U.S. Attorney Greg Melucci wrote, “There is no legal or factual basis for postponing his self-report date, and the United States intends to vigorously object to the defendant's request.”
Nocito was accused in 2018 of using $15 million in unpaid taxes between 2006 and 2012 to build the largest home in Pennsylvania.
The mansion, which he called “Villa Noci,” spans 51,000 square feet and sits on 1.5 acres with 12 bedrooms, 13 bathrooms and 22 fireplaces.
Nocito falsified expenses, including construction costs, facility costs, an outdoor pool and pool house, tennis, basketball and bocce ball courts, and landscaping.
He also spent millions of dollars on other personal expenses, including luxury vehicles, artwork, country club memberships, houses for his children and private school tuition for his grandchildren.
At sentencing, Nocito told the court that he suffered from health problems and that he needed a knee replacement
Nocito was accused in 2018 of using $15 million in unpaid taxes between 2006 and 2012 to build the largest home in Pennsylvania
The mansion, which he called “Villa Noci,” spans 51,000 square feet and sits on 1.5 acres with 12 bedrooms, 13 bathrooms and 22 fireplaces
The U.S. Attorney's Office said Nocito also underreported his company's profits and funneled millions in revenue through other companies.
Nocito also made recurring sham payments from his company to others he owned and categorized the transactions as expenses before deducting the expenses on his corporate tax return.
Overall, the tax loss from misclaiming business expenses was approximately $4 million, while there was a further $11 million loss due to unreported profits.
Nocito pleaded guilty in November last year to conspiracy to defraud the United States and has already paid $15 million in restitution.
Despite asking to be sent home, he was sentenced to one year in prison, followed by a further three years of probation.
At sentencing, Nocito told the court that he suffered from health problems and that he needed a knee replacement.
The U.S. Attorney's Office said Nocito also underreported his company's profits and funneled millions in revenue through other companies
Nocito pleaded guilty in November last year to conspiracy to defraud the United States and has already paid $15 million in restitution
His wife also broke her foot in October and is caring for her, according to court documents from earlier this week.
Nocito plans to postpone surgery on his knee until after he is released from prison.
His son, Joseph Nocito Jr., previously pleaded guilty to two counts of conspiracy to commit bank fraud and filing a false income tax form and was sentenced to 16 months in prison in February 2016.
Nocito's personal assistant, Ann Harris, also pleaded guilty to tax fraud in 2015, admitting to helping him evade over $4 million.
Harris struck a deal with prosecutors to help investigate her former boss.