Joseph W. Nocito, the former President and CEO of Pittsburgh-based health services firm Automated Health Systems Inc. (AHS), has been indicted on 10 federal counts tied to a multi-million dollar scheme to defraud the IRS. The charges, handed down by a federal grand jury on February 13, include conspiracy to defraud the United States and filing false tax returns — crimes that carry a maximum sentence of 32 years in prison and a $2.5 million fine.
The indictment alleges Nocito orchestrated a years-long fraud in which he disguised millions in personal expenses as legitimate business costs. Among the most brazen: charging the construction of his 39,000-square-foot Sewickley mansion — dubbed “Villa Noci” — to corporate accounts. Luxury vehicle payments for a Jaguar, Maserati, and Rolls Royce, along with a personal butler, cook, and country club memberships, were also allegedly funneled through his companies.
U.S. Attorney Scott W. Brady didn’t mince words: “This indictment charges Joseph Nocito with defrauding the IRS through a multi-year, multi-million dollar tax fraud.” According to prosecutors, Nocito didn’t just inflate expenses — he engineered a shell game, shuttling money between AHS and other entities he controlled, including Northland Properties, Golden Triangle Leasing, and Management Financial Services, to artificially slash taxable profits.
Those transfers were falsely labeled as management, administrative, and consulting fees — deductions filed on corporate tax returns with the IRS. By manipulating the books, Nocito allegedly reduced AHS’s tax burden while hiding his true income. He then filed personal tax returns that failed to report the diverted funds, further compounding the fraud.
“When dishonest individuals fraudulently write off their personal expenses, they cheat honest taxpayers,” said Ed Wirth, Acting Special Agent in Charge of IRS Criminal Investigation. “The Special Agents of IRS-CI remain committed to investigating and recommending prosecution of these individuals.” The probe was jointly led by IRS-Criminal Investigation and the U.S. Postal Inspection Service.
The case is being prosecuted by Assistant U.S. Attorneys Gregory C. Melucci, Mary M. Houghton, and Nelson P. Cohen, alongside Department of Justice Tax Division Trial Attorney Jeffrey B. Bender. Nocito is presumed innocent until proven guilty. An indictment is not a conviction — but the evidence laid out paints a picture of calculated greed at the highest levels of a public health contractor. The federal system will now decide if he pays for it in prison.
Related Federal Cases
- Mangis Sentenced For $70K Wire Fraud Scheme · Pennsylvania
- PA Businessman Pleads Guilty to $473K IRS Tax Fraud · Pennsylvania
- Ebensburg Woman Pleads Guilty to Tax Fraud Scheme · Maryland
- Arts & Crafts Fraud: Medicare Hit for $200K · Pennsylvania
- Finger-Painting Fraud: $200K Medicare Rip · Pennsylvania
Key Facts
- State: Pennsylvania
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
🔒 Get the grimiest stories delivered weekly. Subscribe free →
Browse More
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News