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Defendants: Stefan Malgarinos (DOB 01/20/70)

Feb. 21, 2019 -- Westchester County District Attorney Anthony A. Scarpino, Jr. announced Stefan Malgarinos of Pleasantville pleaded guilty Wednesday (2/20) to charges related to stealing withholding tax money from state and federal authorities collected from his clients.

Specifically, he pleaded guilty to:

  • Grand Larceny in the Second Degree, a class C felony
  • Scheme to Defraud in the First Degree, a class E felony

Background
Stefan Malgarinos, owner of Manos Business Management, a payroll processing firm in Pleasantville, 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. In that role, the defendant collected payments from client businesses and was responsible for sending those payments on behalf of his clients to state and federal authorities.

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

Specifically, in his plea, Malgarinos admitted to the following:

In 2015, Malgarinos received in excess of $107,000 from Blueline Tactical Supply and Shooting Sports in Elmsford to pay the company’s tax obligations. He remitted only partial payment of $17,690.48 to authorities and used approximately $87, 732.84 without permission.

In addition to Blueline, he defrauded a total of five businesses in a similar way including:

  • Mid-Bronx Haulage, the Bronx
  • Barrier Contracting, LLC, Tarrytown
  • South of the Border Restaurant, Ossining
  • The Sinon Group, LLC, Armonk

As part of his plea arraignment, a judgment will be entered against Malgarinos for the total amount of restitution, $287,496.84, in favor of five victims.

Sentencing is scheduled for July 10, 2019.

Assistant District Attorney Nicole Gamble of the Economic Crime Bureau is prosecuting this case. 

Stefan Malgarinos

Stefan Malgarinos

 In compliance with the Rules of Professional Conduct, Rule 3.6, you are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.

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Media contact:
media@westchesterda.net

(914) 995-3586

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