Pennsylvania Man Convicted of $650K Workers’ Comp Swindle

April 28, 2009

A federal jury in northeastern Pennsylvania has found a businessman guilty of pilfering nearly $650,000 from a county workers’ compensation fund.

Executive Claims Administration president Charles Costanzo of Dunmore was convicted Wednesday of funneling more than $300,000 of taxpayer money to a personal account, using some to buy a luxury SUV and giving about $28,000 to his mother.

Prosecutors say he also deposited more than $330,000 from the Luzerne County workers’ compensation fund into a personal investment account.

Defense attorney Joshua Lock says Costanzo was entitled to the funds under contract, but jurors rejected his argument.

Costanzo was convicted of a total of 19 charges, including conspiracy, fraud and money laundering. He faces prison and fines in excess of $5 million.

No sentencing date has been set.


Information from: The Times-Tribune

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