Administrator of the Lackawanna County Workers' Compensation Fund Sentenced

Dennis C. Pfannenschmidt, United States Attorney for the Middle District of Pennsylvania; Janice K. Fedarcyk, Special Agent in Charge, Federal Bureau of Investigation; and Don Fort, Special Agent in Charge, Internal Revenue Service announced that Charles A. Costanzo, of Dunmore, Pennsylvania, was sentenced yesterday by United States District Court Senior Judge Edwin Kosik to a total of 70 months’ imprisonment and in excess of $500,000 in restitution for fraud, money laundering, and tax charges in connection with the administration of the Lackawanna County Workers’ Compensation fund.

According to U.S. Attorney Pfannenschmidt, Costanzo was convicted on April 22, 2009 after a three-day trial. The Superceding Indictment returned by a federal Grand Jury stated that from on or about November 11, 2004, and continuing until on or about September 5, 2005, Costanzo conspired with Marc Boriosi to misappropriate approximately $647,260 of Lackawanna County funds. Boriosi previously pleaded guilty to one count of conspiracy and one count of tax evasion in connection with the scheme.

Boriosi is scheduled to be sentenced before Judge Kosik on August 27, 2009.

U.S. Attorney Pfannenschmidt praised the dedication of the investigating agencies and Assistant United States Attorney Lorna Graham for the successful prosecution of Costanzo.

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