A Pennsylvania businessman who was convicted earlier this year in a $15 million fraud scheme involving a mega-mansion has asked for a reduction in his prison sentence.
Joseph Nocito, the former CEO and President of Pittsburgh-based Automated Health Systems (AHS), was sentenced in September to one year in prison for fraud.
The 81-year-old managed to illegally classify $15 million dollars of personal expenses as deductible business expenses and finance construction of a 51,000-foot mansion.
Nocito was allowed to remain free on bond after his sentencing and is to report to the Federal Medical Center in Lexington, Kentucky, on January 22.
In a court filing seen by Trib Live, his attorney has asked for Nocito to be placed on house arrest with electronic monitoring.
Joseph Nocito, pictured here, was sentenced in September to one year in prison for fraud
The 81-year-old managed to illegally classify $15 million dollars of personal expenses as deductible business expenses and finance construction of a 51,000 mansion
Nocito’s motion also included the fact that he would serve it at a different, smaller residence away from his opulent mansion where he previously employed a butler.
Attorney Philip DiLucente also asked District Judge Joy Flowers Conti to consider implementing new sentencing guidelines that will take effect in February of next year on Nocito.
The change in policy gives a downward adjustment for defendants who have no previous criminal history, which would apply to his client.
DiLucente asked Conti to delay a report due on Nocito until after February when the guidelines change.
In a response to Nocito’s request, the government gave a short response to the motion.
Assistant U.S. Attorney Greg Melucci wrote: ‘There is no legal nor factual basis to delay his self report date, and the United States intends to strenuously object to the Defendant’s request.’
Nocito was charged in 2018 with using $15 million in unpaid taxes from 2006 to 2012 which he used to build the largest home in Pennsylvania.
The mansion, which he named ‘Villa Noci’, stretches across 51,000-square feet and sits on 6.2 acres of land, with 12 bedrooms, 13 bathrooms and 22 fireplaces.
Nocito falsified expenses which included construction costs, furnishings, an outdoor pool and pool house, tennis, basketball and bocce courts, and landscaping.
He also expensed millions of dollars for other personal expenses which included luxury vehicles, artwork, country club memberships, homes for his children and private school tuition for his grandchildren.
At his sentencing, Nocito told the court he was suffering from health problems that include him needing a knee replaced
Nocito was charged in 2018 with using $15 million in unpaid taxes from 2006 to 2012 which he used to build the largest home in Pennsylvania
The mansion, which he named ‘Villa Noci’, stretches across 51,000-square feet and sits on 6.2 acres of land, with 12 bedrooms, 13 bathrooms and 22 fireplaces
The U.S. Attorney’s Office said that Nocito also underreported the profits of his company, and shuffled millions of income through other entities.
Nocito also made recurring sham payments from his company to others that he owned and categorized the transactions as expenses before deducting the expenses in his corporate income tax returns.
In total the tax loss from falsely claiming business expenses amounted to around $4 million, while there was another loss of $11 million for under reporting profits.
Nocito pleaded guilty to one count of conspiracy to defraud the US in November of last year and has already paid $15 million restitution.
Despite asking for house ordered to serve a year behind bars, followed by a further three years on probation.
At his sentencing, Nocito told the court he was suffering from health problems that include him needing a knee replaced.
The U.S. Attorney’s Office said that Nocito also underreported the profits of his company, and shuffled millions of income through other entities
Nocito pleaded guilty to one count of conspiracy to defraud the US in November of last year and has already paid $15 million restitution
According to the court filing earlier this week, his wife also broke her foot in October and has been caring for her.
Nocito is planning to delay the surgery on his knee until after his release from prison.
His son, Joseph Nocito Jr., had previously pleaded guilty to two counts of conspiracy to commit bank fraud and filing a false income tax form and was given 16 months in jail in February of 2016.
Nocito’s personal assistant Ann Harris also pleaded guilty in 2015 to tax fraud, and admitted to helping him evade over $4 million.
Harris entered into a plea agreement with prosecutors to help investigate her former boss.