PA Cyber CEO Trombetta Indicted in $8M Fraud

PITTSBURGH, Pa. – Nicholas Trombetta, 58, of East Liverpool, Ohio, the former CEO of the Pennsylvania Cyber Charter School, and his accountant, Neal Prence, 58, of Koppel, Pa., are facing federal charges following an indictment unsealed today. The pair are accused of orchestrating an elaborate fraud scheme that siphoned millions from the publicly funded school.

The 11-count indictment alleges Trombetta and Prence conspired to commit mail fraud, theft or bribery concerning a program receiving federal funds, tax conspiracy, and filing false tax returns. The charges stem from a years-long investigation by the FBI, IRS-Criminal Investigation, and the U.S. Department of Education Office of Inspector General.

According to federal prosecutors, Trombetta, as founder and Superintendent of PA Cyber, created a network of for-profit and non-profit entities designed to funnel taxpayer money away from the school and shield himself from federal income tax. Prence, acting as Trombetta’s accountant, allegedly aided in the scheme, falsifying records and concealing Trombetta’s true income. Over a six-year period beginning in 2006, Trombetta is accused of diverting more than $8 million in income to other individuals’ tax returns.

“As the founder and CEO of PA Cyber, Trombetta was a custodian of the public trust, receiving public funds,” stated U.S. Attorney David J. Hickton at a news conference. “These charges reflect our obligation to protect the education of children, who are our future, and to protect the compact with hardworking taxpayers.” The FBI’s Special Agent in Charge, Gary Douglas Perdue, added, “When individuals enrich themselves with this money rather than act as stewards of the education funds entrusted to them, our communities and the children we are obligated to educate are the true victims.”

Investigators say Trombetta exerted his influence to control the flow of funds and manipulate corporate books. Steven Anderson, Special Agent in Charge of the Department of Education’s Office of Inspector General, minced no words: “Mr. Trombetta and Mr. Prence knowingly and willfully abused their positions of trust for personal gain and did so at the expense of the educational development of children. That is unacceptable.”

If convicted, Trombetta faces a maximum sentence of 100 years in prison and a $3,250,000 fine. Prence faces a maximum of five years imprisonment and a $250,000 fine. The case is being prosecuted by Assistant United States Attorneys James R. Wilson, Robert S. Cessar, and Stephen R. Kaufman. It’s crucial to remember that an indictment is merely an accusation, and both defendants are presumed innocent until proven guilty in a court of law.