Chillicothe Man Pleads Guilty to Bank Embezzlement and to Filing False Income Tax Returns with the IRS
COLUMBUS, OH—Joseph P. Molnar, 50, of Chillicothe, Ohio, pleaded guilty to one count of embezzlement from a financial institution and to one count of willfully filing a false federal income tax return with the Internal Revenue Service (IRS). Molnar faces a maximum prison term of 30 years and a fine of up to $1,000,000.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service Criminal Investigation, Cincinnati Field Office, and Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation, Cincinnati Field Division, announced the guilty plea entered before U.S. District Judge Algenon L. Marbley.
According to court documents, between July 2005 and July 2012 Joseph Molnar was an employee of Huntington National Bank. Specifically, Molnar was a Managing Director for a Huntington subsidiary, Huntington Community Development Corporation. Molnar misapplied and embezzled approximately $4,076,189.44 of Huntington National Bank’s funds by falsely representing that he was paying “placement fees” or “advisory fees” for property management companies as part of several affordable housing property deals that had closed with Huntington National Bank. Instead, Molnar withdrew the funds under false pretenses and placed that money into his own accounts for his own personal use.
In addition, Molnar omitted these funds as income on his own income tax returns. Molnar filed a false income tax return with the IRS for the 2009 income tax year by falsely stating that he had an adjusted gross income of $94,358, when in actuality his income was approximately $1,226,103.16.
For 2008 through 2012 income tax years, Molnar underreported his income by a combined total of $3,054,064.44, which has resulted in total tax due and owing in the amount of approximately $987,011.66 to the IRS.
Molnar was release on bond pending his sentencing, for which a date was not set.
“The FBI is committed to identifying and holding accountable those executives and employees of federally insured financial institutions who violate their fiduciary responsibilities and illegally divert the trusted deposits of America’s banking customers for their own personal use,” said Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation, Cincinnati Field Division.
“This investigation uncovered a multi-million dollar embezzlement scheme laced with a web of financial lies.” said Kathy A. Enstrom, Special Agent in Charges, IRS Criminal Investigation, Cincinnati Field Office. “If you are thinking about participating in a fraudulent tax scheme, including failing to report all forms of income, you should stop in your tracks and simply look at the consequences of taking the next step.”
U.S. Attorney Stewart commended the investigation by the IRS and FBI, Assistant United States Attorneys Daniel A. Brown and Laura M. Fulton, who are prosecuting this case.
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