Pittsburgh tax attorney Steven Lynch, 61, was hit with a 48-month federal prison sentence after being convicted of stealing more than $790,000 in employment taxes from his own employees. The owner of the Iceoplex at Southpointe in Washington County, Pennsylvania, Lynch used his position of power to systematically ignore federal tax obligations for years, leaving workers unknowingly on the hook while he funneled money elsewhere.
A jury found Lynch guilty in September 2016 after a trial that peeled back the curtain on his dual role as both a legal expert in tax law and an offender who exploited it. Between 2012 and 2015, Lynch, who co-owned and operated the sprawling sports and fitness complex, failed to forward to the IRS more than $790,000 in taxes withheld from employee wages. The facility included an ice rink, soccer court, fitness center, and a full-service bar and restaurant.
As the individual who controlled the finances for the Iceoplex businesses, Lynch had a legal and ethical duty to remit payroll taxes. Instead, court documents reveal, he chose to divert funds while continuing to operate high-profile leisure operations. His status as a licensed tax attorney only deepened the betrayal—knowledge of the law wasn’t a shield, prosecutors argued, but a weapon he misused.
“Business owners who choose not to pay over to the United States the taxes that they withheld from their employees’ wages are stealing from the U.S. Treasury,” said Principal Deputy Assistant Attorney General Caroline D. Ciraolo. “And they should plan on facing prosecution and incarceration.” The message from the Justice Department was clear: no expertise, not even in tax law, grants immunity from accountability.
U.S. District Judge Arthur Schwab handed down the 48-month sentence, along with three years of supervised release, $793,145 in restitution to the IRS, and a $75,000 fine. Special Agent in Charge Akeia Conner of IRS Criminal Investigation emphasized that Lynch’s breach of trust as a financial gatekeeper was not just a paperwork lapse—it was a crime. “Today, justice is served,” she said. “Mr. Lynch is being held accountable for his criminal actions.”
The case was investigated by IRS-CI and prosecuted by Trial Attorneys Jeffrey Bender and Brittney Campbell of the Justice Department’s Tax Division, with support from the U.S. Attorney’s Office in the Western District of Pennsylvania. The conviction underscores a broader crackdown on employment tax fraud—a crime that undermines fair competition and steals directly from public coffers.
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Key Facts
- State: Pennsylvania
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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