Stephanie and Scott Roskovski, who are facing federal charges that include allegedly embezzling $1.3 million from Butler Health System, walk into federal court Friday for their second court appearance.

PITTSBURGH — A federal judge scolded the former chief operating officer of Butler Health System during her sentencing Thursday, telling her that she “presided like royalty over an empire of lies that you built. Now, comes the bill due.”

U.S. District Judge William Stickman IV sentenced Stephanie Roskovski, 51, to 51 months in prison for defrauding the health system of up to $1.3 million between 2011 and 2017.

Her husband, Scott Roskovski, 53, also was sentenced Thursday and received 30 months in prison for his role in filing false tax returns to conceal the fraudulent money and lying on a bank loan statement.

Prior to sentencing, Stephanie Roskovski apologized for her actions, but defended her work at BHS. “To anyone currently doing something illegal, stop right now. The devastation is unspeakable,” she said.

“I will use this experience as a catalyst to do good for the rest of my life.”

Prosecutors and attorneys for the Center Township couple have not reached an agreement on how much the pair owes BHS and the Internal Revenue Service in restitution. Stickman will decide that 90 days after reviewing arguments made by both sides this week and court documents.Additionally, Stickman said the couple owe the IRS between $250,000 and $550,000.Scott and Stephanie Roskovski each pleaded guilty May 28, 2020, to two counts relating to the fraud.As part of the plea deal, all other counts in the 42-count indictment were dropped, and the Roskovskis will be allowed to keep their home, motocross business and other assets even though it was determined that illegally gained funds were used for these assets.The couple were sentenced to the maximum penalties under sentencing guidelines prosecutors and the defense agreed to in the weeks leading up to Thursday.Scott Roskovski indicated that he plans to appeal the sentence.

Stickman explained his reasoning for the sentences.“Everyone is a mixed bag. You've also done positive things,” Stickman said, noting that sentencing someone is the hardest part of a federal judge's job and he had trouble sleeping Wednesday evening.But he said that Stephanie Roskovski's white-collar crime still is a crime and that her fraud led to a loss of trust from the wider public.“You abused that trust,” Stickman said.He calculated that she defrauded the health system of $494,000 through the use of the company's credit cards and $400,000 in forged disbursement requests. He also said she used BHS money for gift cards for the couple's personal expenses.“The seriousness of this case is reflected on what you spent money on: lavish parties with lavish party toys, mechanical bulls,” he said. “You enjoyed going to concerts ... lavish trips to Atlanta, Hawks Cave (resort in Florida), Orlando, Las Vegas, Miami, New York City, Nashville, Tenn., Colorado, Hawaii.”

The judge continued, “This crime was not a momentary moment of weakness. It went on year after year after year after year. You could have decided to stop at any point before being caught, and that requires the highest part of the sentencing range.”Stickman said that he often bases his decisions on pre-sentence investigations, which provide a judge with a defendant's history.“We see a lot of folks that show wreckage of broken homes, addiction abuse and other issues,” Stickman said. “In your case, you leave me confounded as to why you're in this seat today. Your life looks like the American Dream.”He noted that Stephanie Roskovski has a close family that supports her and has no history of mental illness or any kind of addiction abuse.“You have been blessed with two children,” he said. “You're educated with a bachelor's and master's degrees. You had a prestigious and lucrative career. You're not a repeat offender. You have no trauma from being in the criminal justice system.”Looking for a reason for her actions, Stickman said he couldn't find one.

“You offended from a position of privilege,” Stickman said. “There was no reason to steal except to fund your lavish lifestyle. Your background shows it wasn't desperation, but insatiable greed for more, more, more.”In sentencing Stephanie Roskovski, Stickman said he hoped to deter other “high-power people to stop or don't begin.”For these reasons, he sentenced her to 51 months in prison for the charge of mail fraud and 36 months in prison for filing a false income tax return. The two sentences are to run concurrently. After being released, she will be on government supervision for three years.She is also ordered to pay $55,000 as a forfeiture order.The Roskovskis weren't detained Thursday, but will have to report to the U.S. Marshals Service to arrange for their incarceration.

Stephanie Roskovski told the court that “I'll forever be remorseful. There is no excuse for what I did,” she said. “I thought I was acting out of love, but I wasn't.”She said that while she has made mistakes, she “also made positive changes” during her time at the health system.“None of this excuses what I've done,” she said. “Our mindset from the beginning has been to go above and beyond to right our wrongs.”To back up that claim, her attorney, Robert Ridge, said that a civil settlement the Roskovskis reached with the health system several years ago attempted to compensate the health system's losses.He said that Stephanie Roskovski repaid $71,000 in July 2017. He said that she also forfeited her cash balance plan worth more than $254,000, and $70,000 worth in unpaid vacation days.“She's forfeited her entire financial security,” Ridge said.In total, he said she forfeited more than $850,000.Ridge asked Stickman to sentence Stephanie Roskovski to the low end of the sentencing guidelines.“When she emerges from whatever sentence she gets, she will be a woman in her mid-50s, a felon with limited career opportunities on the horizon. That's a deterrence in itself.”

But Assistant U.S. Attorney Carolyn J. Bloch, prosecuting the case, asked for the highest sentence.“They used this money for their own benefits. It was pure greed,” Bloch said. “They spent some of the money to get Scott Roskovski's dream business (Switchback MX). There's no evidence she did one charitable thing with this money.”Bloch continued, “They took vacations that most of us can't even dream of. She knew Butler Health System's weaknesses and took advantage of it. Everybody is sorry when they get caught.”Bloch recalled the previous day's proceedings during which the health system's CEO, Ken DeFurio, was questioned on his role in overseeing Stephanie Roskovski's financial activities.“Her defense sought to portray the CEO as negligent, as somehow improper,” Bloch said.“How dare she come in here today and say she's remorseful. She walked in here and tried to make (DeFurio) look like a bad guy.”

Scott Roskovski declined to make a statement after his sentencing.Stickman also reviewed Scott Roskovski's pre-sentence investigation and also found his history of general affluence and good fortune to be lacking any reason why he would help his wife commit fraud.Scott Roskovski's attorney, Stephen Stallings, began his closing arguments by noting that Scott Roskovski unsuccessfully tried multiple times to withdraw his guilty plea.Stallings then returned to arguments he made in previous days that there is no evidence to support Scott Roskovski's knowledge of the health system fraud.“I'm not saying there wasn't any fraud. Two things can be true at the same time,” Stallings said. “BHS was victimized, and Scott was not a known participant in the scheme. There is no real evidence that shows Scott knew about this. There wouldn't be enough evidence here to bring this to a jury.”But Bloch disagreed in her closing arguments, saying that the evidence proved Scott Roskovski's involvement.“These two people shared everything. They knew about each other's activities,” Bloch said.Stickman sentenced Scott Roskovski to 30 months in prison for filing a false loan application, the highest amount within the sentencing range. He received an identical sentence for filing a false income tax return.The two sentences are to be served concurrently. After being released, he will be on government supervision for two years.“I'm left with no question that you're guilty and you had knowledge of your wife's schemes,” Stickman said, adding that, like his wife, he “offends from a position of privilege.”