U.S. Attorney's Office
Southern District of New York
(212) 637-2600
June 4, 2014

Former Chief Financial Officer Pleads Guilty in White Plains Federal Court to Embezzling $5.7 Million and Evading Income Taxes

Preet Bharara, the United States Attorney for the Southern District of New York, announced today that Gregg Pierleoni pleaded guilty to fraud and tax evasion charges arising from his embezzlement of more than $5.7 million from his employer. Pierleoni pleaded guilty to one count of mail fraud and one count of tax evasion today in White Plains federal court before U.S. District Judge Vincent L. Briccetti, who set a sentencing date for September 18, 2014.

U.S. Attorney Preet Bharara stated, “Gregg Pierleoni indulged in an opulent lifestyle, at the expense of his employer and the American taxpayer. With his guilty plea today, he will now have to pay for that decision.”

According to the allegations in court documents filed in White Plains federal court:

Pierleoni was the chief financial officer (CFO) of a privately held moving and storage company that maintained its headquarters in Westchester County. As CFO, Pierleoni was authorized to write checks drawn on and transfer funds from bank accounts held by the moving company and a related entity. From about October 2006 to about April 2013, Pierleoni paid more than $5.7 million in personal expenses with the moving company’s funds. These personal expenses included collectible items, sports memorabilia, airline tickets and other travel expenses, artwork, tickets to sporting events, and meals in restaurants.

Pierleoni also failed to report the $5.7 million he embezzled from the moving company as income on his personal tax returns for 2007 through 2011 and failed to file a U.S. Individual Income Tax Return Form 1040 for 2012. The resulting loss to the Internal Revenue Service was more than $1.4 million.

Pierleoni, 59, of New Fairfield, Connecticut, faces sentences of 25 years’ imprisonment on the mail fraud and wire fraud counts. The maximum statutory sentences are prescribed by Congress and provided here for informational purposes, as any sentencing of the defendant would be determined by the judge.

Mr. Bharara praised the investigative work of the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation.

This case is being handled by the Office’s White Plains Division. Assistant U.S. Attorney James McMahon is in charge of the criminal prosecution.

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