Founder of Cyber Charter School pleads not guilty to fraud, conspiracy
The federal government wiretapped at least one phone in its investigation of cyber school leader Nick Trombetta and his accountant, and gathered so much evidence, it needed a database to track it.
Assistant U.S. Attorney Robert Cessar told a federal magistrate on Wednesday that his office would share CDs of evidence and the database with lawyers for Trombetta and his accountant, Neal Prence of Koppel.
Court papers Cessar filed after an arraignment in U.S. District Court, Downtown, show one CD contains recordings from a wiretap on a phone with a 724 area code. It does not indicate the phone's owner, and the number is not accepting calls.
The papers show Trombetta spoke with FBI agents and the Internal Revenue Service interviewed Prence in July 2012, more than a year before a grand jury last week indicted the pair on charges connected to fraud involving the state's largest cyber charter school and tax money.
Trombetta, 58, of East Liverpool, Ohio, who founded Pennsylvania Cyber Charter School in 2000, pleaded not guilty to charges that he used the school and a string of spinoffs to pad his pockets with nearly $1 million.
Prence, 58, pleaded not guilty to tax conspiracy charges. Prosecutors say he prepared false tax returns for Trombetta and leaders of two shell companies to help hide $8 million from the IRS over six years, of which at least $990,000 went to Trombetta.
Both men remained silent through a five-minute arraignment before Chief U.S. Magistrate Lisa Pupo Lenihan and while reporters questioned them and their attorneys as they left the courthouse.
“We just pleaded not guilty. That's what there is to know,” attorney J. Alan Johnson said when pressed for comment.
Before the hearing, Trombetta hugged Prence and shook hands with prosecutors who want the once-honored school leader to forfeit the nearly $1 million they say he took for homes, food and travel.
U.S. Attorney David Hickton last week described an intricate fraud mostly involving tax money. Charter schools such as PA Cyber collect money from school districts in which their students live.
Prosecutors say Trombetta, who left the Midland school last year just before agents searched his office there and related offices, formed the shell companies, one2one and Avanti Management Group, to move money from the school and to bilk money from online education programs in Ohio and New Mexico.
He used the money, they said, to buy property, including a $900,000 condo in Florida and his girlfriend's home in Ohio, a $300,000 airplane, to pay for groceries and to eat at restaurants.
It's unclear how much money is left. Phone numbers for Avanti are disconnected.
Hickton said Trombetta and Prence planned to move the last bit of money from Avanti to a new shell company called Presidio around the time of the searches.
Trombetta went to work at Kuhn's Quality Foods as its personnel director. A woman who answered the company's phone declined to comment and hung up.
Prosecutors said employees of PA Cyber and a related nonprofit who did work that earned Trombetta money did not know about the scheme, and that PA Cyber did nothing wrong. Leaders of Avanti, who prosecutors say knew about Trombetta's activities, have not been charged.
Hickton said the investigation continues.
Trombetta and Prence remain free on bond. Johnson told Lenihan that he had Trombetta's passport and would surrender it.
David Conti is a staff writer for Trib Total Media. He can be reached at 412-388-5802 or email@example.com.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- Flyers continue mastery of Penguins at Consol
- NFL notebook: Goodell must testify at Rice appeal
- Pitt offense eyes healthy balance
- Metropolitan Division holding own in early part of season
- Gorman: A WPIAL playoff drought about to end
- High school roundup: Canon-Mac girls down Peters Twp. in shootout
- Motorist in Downtown mishap, passenger arrested on drug charges
- Through the years, Rogers keeps his focus on entertaining
- Security at Capitol questioned
- Penn State defense returns to familiar spot atop Big Ten Conference
- Schools reopen as manhunt for Frein continues