Administrator of the Lackawanna County’s Workers Compensation Fund Convicted

Martin C. Carlson, United States Attorney for the Middle District of Pennsylvania; Janice K. Fedarcyk, Special Agent in Charge, Federal Bureau of Investigation; and Leslie DeMarco, Special Agent in Charge, Internal Revenue Service announced that Charles A. Costanzo, of Dunmore, Pennsylvania, was convicted today on 19 counts of fraud, money laundering, and tax charges in connection with the administration of the Lackawanna County Workers’ Compensation fund. The jury deliberated less than an hour-and-a-half before returning the guilty verdicts. U.S. District Court Senior Judge Edwin Kosik presided over the three-day trial.

The Superceding Indictment returned by a federal Grand Jury stated that from on or about November 11, 2004, and continuing until on or about September 5, 2005, Costanzo conspired with Marc Boriosi to misappropriate approximately $647,260 of Lackawanna County funds. Boriosi previously pleaded guilty to one count of conspiracy and one count of tax evasion in connection with the scheme.

Costanzo faces a maximum of 191 years’ incarceration, fines in excess of $5 million, a term of supervised release as well as forfeiture of the proceeds and derivative proceeds of the offenses. A sentencing date has not yet been schedule.

U.S. Attorney Carlson praised the dedication of the investigating agencies and Assistant United States Attorney Lorna Graham for the successful prosecution of Costanzo.