Pleasantville business owner sentenced to prison for stealing $300K from clients

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WHITE PLAINS – The owner of a Pleasantville-based payroll processing firm was sentenced in Westchester County Court to two to six years in state prison after pleading guilty to charges related to stealing withholding tax money from state and federal authorities collected from his clients.

Judge Michael Martinelli sentenced Stefan Malgarinos, 49, to two to six years in prison on a charge of grand larceny and one to three years in prison on a charge of scheme to defraud. Both sentences are to run concurrently. He was also ordered to pay restitution of roughly $300,000 to five companies.

Malgarinos owned Manos Business Management, a payroll processing firm in Pleasantville, which was hired by businesses to file withholding tax returns, to pay the withholding taxes collected from employees, and to remit unemployment insurance premiums to state and federal tax and labor authorities.

From October 1, 2012 to December 16, 2015, Malgarinos collected the full amount due to tax authorities from his clients but failed to remit the entire amount to authorities and used the funds for his personal use without the knowledge or permission of his clients.