Butler couple pleads guilty to charges related to $1.3M embezzlement from Butler Health System

The former chief operating officer for Butler Health System and her husband, a former detective with the Butler County District Attorney’s Office, pleaded guilty to federal fraud and tax charges, U.S. Attorney Scott W. Brady announced Thursday.

Prosecutors said Stephanie J. Roskovski, 50, and Scott A. Roskovski, 51, of Butler, embezzled more than $1.3 million from Butler Health System from April 2011 through December 2017 while she served as the health system’s chief operating officer.

Stephanie Roskovski pleaded guilty Wednesday to one count of mail fraud and one count of filing a false income tax return. Scott Roskovski pleaded guilty Thursday to one count of filing a false income tax return and one count of submitting a false loan application to a bank.

Stephanie Roskovski was named chief operating officer of the health system in 2012. She had started working at Butler Memorial Hospital in 1994 and became an administrator in 2002.

Prosecutors said Roskovski used her corporate credit card to make personal purchases that she disguised as business expenses, submitted falsified reimbursement requests claiming purchases she made on a personal credit card were for business and obtained hundreds of merchant gift cards worth more than $350,000, falsely claiming they were for distribution to focus groups or physicians but that she used for herself.

As a detective with the district attorney’s office, Roskovski investigated financial crimes, including theft and fraud. He was fired in August 2018.

Brady said the couple’s crimes “truly shock the conscience.”

“Both were in positions critical to the health and safety of their community,” he said. “Once trusted employees, today they are convicted felons.”

Prosecutors said the couple spent most of the stolen money on lavish vacations, home renovations and to buy and operate a 70-acre motocross track, Switchback MX LLC, in Butler County.

“Fraud and dishonesty undermine the integrity of our health care system and cost taxpayers money. This couple thought they would live a lavish lifestyle with other people’s money,” said Mike Christman, FBI Pittsburgh special agent in charge. “It’s even more concerning that a now-former law enforcement detective, sworn to uphold the law, perpetrated the very crimes he was also investigating.”

The Roskovskis did not report the proceeds as income on their joint tax returns. After losing their jobs, they submitted a false loan application to S&T Bank to refinance Switchback and to buy a bulldozer. The bank made two loans, for about $1.13 million and $55,000, based on the false information.

In addition to the loss to Butler Health System, the tax loss to the IRS was nearly $400,000.

“All income is taxable, including money that someone embezzles from their employer,” said Thomas Fattorusso, special agent in charge of IRS-Criminal Investigation.

Stephanie Roskovski’s sentencing is scheduled for Oct. 5. Scott Roskovski is scheduled to be sentenced on Oct. 6.