Chillicothe Man Sentenced on Bank Embezzlement and IRS Charges
COLUMBUS, OH—Joseph P. Molnar, 51, of Chillicothe, Ohio, was sentenced to 72 months in prison, five years of supervised release, and was ordered to pay $4,076,189.44 in restitution to Huntington National Bank and $987,011.66 in restitution to the Internal Revenue Service (IRS) for embezzling approximately $4,076,189.44 from Huntington National Bank and willfully filing a false federal income tax return with the IRS. Molnar previously pleaded guilty to the aforementioned charges on October 24, 2014.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation, and Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service Criminal Investigation, Cincinnati Field Office announced the sentence handed down today by 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.
“For seven years Joseph Molnar abused his fiduciary responsibility as an executive at Huntington National Bank,” said Angela L. Byers, Special Agent in Charge of the FBI’s Cincinnati Division. “In doing so, he took advantage of his position of trust to defraud the bank and its customers for his own pecuniary gain. The FBI and other law enforcement agencies rely heavily on the trust and cooperation of members of the financial industry and citizens to assist us in performing our mission. Through this cooperative effort we are able to identify the Joseph Molnars of the world and hold them accountable for their own greed.”
“The role of IRS Criminal Investigation becomes even more important in embezzlement and fraud cases due to the complex financial transactions that can take time to unravel,” said Kathy A. Enstrom, Special Agent in Charges, IRS Criminal Investigation, Cincinnati Field Office. “The federal tax laws are normally violated in these cases which can add to additional jail time. As we often see, the victims are not only the taxpayers, but also the individuals and entities who suffer the financial harm.”
U.S. Attorney Stewart commended the investigation by the IRS and FBI, Assistant United States Attorney Daniel A. Brown, who prosecuted this case.