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

Sept. 18, 2019 -- Westchester County District Attorney Anthony A. Scarpino, Jr. announced Stefan Malgarinos, owner of a Pleasantville-based payroll processing firm, was sentenced to state prison after pleading guilty to charges related to stealing withholding tax money from state and federal authorities collected from his clients.

Specifically, Westchester County Court Judge Michael Martinelli sentenced Malgarinos as follows:

  • On Grand Larceny in the Second Degree, a class C felony – two to six years in state prison
  • On Scheme to Defraud in the First Degree, a class E felony – one to three years in state prison

The terms will run concurrently (at the same time). In February, he pleaded guilty to the two charges.

In addition to the prison terms, the court also signed Orders of Restitution for the following victims in the amounts listed below:

  1. Mid-Bronx Haulage $108,880.00
  2. Blueline Tactical Supply $ 87,732.84
  3. Barrier Contracting LLC $71,680.00
  4. South of the Border $17,204.00
  5. The Sinon Group, LLC $2,000.00

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. He also admitted to defrauding the four other businesses.

Assistant District Attorney Nicole Gamble of the Economic Crimes Bureau prosecuted this case.


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