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Connoquenessing woman sentenced for $1.67 million embezzlement, tax fraud

A Connoquenessing woman was sentenced to prison for stealing at least $1.67 million from her Pittsburgh employer, United States Attorney Eric Olshan said Wednesday, Jan. 31.

Constance Stobert, 58, received a sentence of four years and three months in prison followed by three years of supervised release for her convictions of wire fraud and making false statements on her tax returns. The sentence was handed down by United States District Judge Arthur Schwab in federal court Tuesday.

Officials said Stobert worked as a controller for Mechanical Operations Company from 1994 to July 2021.

The U.S. Attorney’s Office stated the millions of dollars were embezzled between January 2014 and July 2018, and that Stobert filed false tax returns between the 2016-2019 tax years. The tax loss to the government was reportedly $545,990.

The total amount taken from the company was at least $1,678,893 in company assets, according to the U.S. Attorney's Office.

Prior to imposing sentence, Judge Schwab said Stobert caused substantial financial hardship to the company and its owners and Stobert’s crimes were intentional, serious and occurred over a substantial period of time.

“The victim entrusted Ms. Stobert with unfettered access to corporate funds, and, for years, she betrayed that trust by stealing more than $1.5 million and taking deliberate steps to cover up her theft,” Olshan said. “This type of deception will not be tolerated, and bringing the perpetrators of such financial crimes to justice will continue to be an important part of the work of this office and our partners in law enforcement.”

Stobert used corporate credit cards to withdraw cash at ATMs in casinos in Pittsburgh and Las Vegas and wrote checks from company bank accounts to make credit card payments, according to the U.S. Attorney's Office.

“Ms. Stobert used her position to fund her lavish lifestyle and while doing so not only defrauded her employer, but honest hardworking Americans who pay their tax obligations every year,” said Kevin Rojek, FBI Pittsburgh special agent in charge. “This sentencing should serve as reminder to anyone willing to take advantage of their employment to steal funds the FBI will ensure you are held accountable in the criminal justice system.”

“No matter the source of the income, all income is taxable, and accurate tax returns must be filed,” said Yury Kruty, special agent in charge at the IRS’ Philadelphia field office. “Constance Stobert embezzled from her employer for years and failed to report the stolen funds on her personal income tax returns. The prosecution of individuals who intentionally conceal income and evade taxes is always a priority for IRS-CI.”

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