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- Sep 30, 2011
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Pittsburgh • The founder and former CEO of an online public school that educates thousands of Pennsylvania students pleaded guilty Wednesday to federal tax fraud, acknowledging he siphoned more than $8 million from The Pennsylvania Cyber Charter School through for-profit and nonprofit companies he controlled.
In entering his plea, Nicholas Trombetta, 61, who headed the school, acknowledged using the money to buy, among other things, a Bonita Springs, Fla. condominium for $933,000, pay $180,000 for houses for his mother and girlfriend in Ohio, and spend $990,000 more on groceries and other items.
He manipulated companies he created and controlled to draw the money from the school, also spending it on a $300,000 plane, Assistant U.S. Attorney Stephen Kaufman said.
...Kaufman said Trombetta used Avanti, the National Network of Digital Schools and other companies in the scheme.
The Network of Digital Schools markets a curriculum developed in conjunction with PA Cyber and sold it back to the school, while Avanti provided unspecified management services, the prosecutor said.
Avanti had four owners who pretended to be equal 25 percent partners when, in reality, Trombetta owned 80 percent of the firm, Kaufman said.
Hoffinger objected to some of Kaufman's descriptions — though they're contained in the indictment — at one point prompting U.S. District Judge Joy Flowers Conti to say, "Well, if you can't agree on that, I can't take this plea."
Charter school founder admits $8M in tax fraud
Nail him for 5 years.
In entering his plea, Nicholas Trombetta, 61, who headed the school, acknowledged using the money to buy, among other things, a Bonita Springs, Fla. condominium for $933,000, pay $180,000 for houses for his mother and girlfriend in Ohio, and spend $990,000 more on groceries and other items.
He manipulated companies he created and controlled to draw the money from the school, also spending it on a $300,000 plane, Assistant U.S. Attorney Stephen Kaufman said.
...Kaufman said Trombetta used Avanti, the National Network of Digital Schools and other companies in the scheme.
The Network of Digital Schools markets a curriculum developed in conjunction with PA Cyber and sold it back to the school, while Avanti provided unspecified management services, the prosecutor said.
Avanti had four owners who pretended to be equal 25 percent partners when, in reality, Trombetta owned 80 percent of the firm, Kaufman said.
Hoffinger objected to some of Kaufman's descriptions — though they're contained in the indictment — at one point prompting U.S. District Judge Joy Flowers Conti to say, "Well, if you can't agree on that, I can't take this plea."
Charter school founder admits $8M in tax fraud
Nail him for 5 years.
