Bell Acres businessman convicted of $15 million fraud asks for reduction of his 1-year prison term

The Bell Acres man convicted in the largest tax fraud ever in Western Pennsylvania is asking a federal judge to reduce his sentence.

Joseph Nocito, 81, was ordered to serve one year and one day in federal prison.

Following his sentencing in September, he was allowed to remain free on bond. He is supposed to report to the Federal Medical Center at Lexington to begin serving his sentence Jan. 22.

However, in a federal court filing on Thursday, Nocito’s defense attorney, Philip DiLucente, said that a change in U.S. Sentencing Guidelines that took effect Nov. 1 should apply to his client.

The change gives a downward adjustment for defendants with no previous criminal history, which would apply to Nocito.

The guideline range that applied to Nocito when he was sentenced called for a prison term of 37 to 46 months. However, U.S. District Judge Joy Flowers Conti gave him a significant departure, citing his age, medical conditions and history of good works.

The newly amended guidelines would call for a prison term of 30 to 37 months.

Still, Nocito asks for house arrest with electronic home monitoring.

Related:

• 9.18.2023. Bell Acres man gets 1 year, 1 day in federal prison for $15M tax fraud
• 8.28.2023. Bell Acres businessman who admitted to $15M in tax fraud asks for house arrest or probation
• 11.30.2023. Assistant to Bell Acres businessman gets probation in multimillion fraud case
• 8.30.2023. Editorial: Is house arrest fair if the house was built with fraudulent funds?
• 11.17.2022. Bell Acres CEO of accounting firm pleads guilty to defrauding IRS of over $15M
• 2.14.2018. Bell Acres businessman who admitted to $15M in tax fraud asks for house arrest or probation

He asked Conti to delay his self report date until after Feb. 1, when re-sentencing under the new amendment is permitted to begin.

If not, he asks that the court push his report date back to April 17 to allow him to review voluminous tax returns from his approximately 115 companies in which Nocito has an ownership interest.

In a short response to Nocito’s motion also filed Thursday, the government objected to his request.

“There is no legal nor factual basis to delay his self report date, and the United States intends to strenuously object to the Defendant’s request,” wrote Assistant U.S. Attorney Greg Melucci.

He asked to have until Dec. 29 to file a full reply.

Nocito was charged in 2018 with taking $15 million in unpaid taxes from from 2006 to 2012. He used the money to build the largest house in Pennsylvania.

The Bell Acres mansion is 51,000-square feet and situated on 6.2 acres. It has 12 bedrooms, 13 full bathrooms and 22 fireplaces.

Prosecutors also said Nocito wrote off personal expenses for luxury vehicles and private school tuition for his grandchildren.

Nocito was president and CEO of Automated Health Systems. The government said he improperly concealed income from the company, which is a Medicaid enrollment brokering firm, and under-reported company profits.

The tax loss from falsely claiming business expenses was about $4 million, while there was a tax loss of $11 million for under-reporting company profits.

Nocito pleaded guilty to one count of conspiracy to defraud the United States in November 2022.

Although he asked for house arrest, Conti ordered him to serve a year in federal prison, to be followed by three years probation, with six months of that on house arrest.

He has already paid $15 million in restitution.

At his sentencing hearing, Nocito told the court about a myriad of health problems and asked to remain free to wrap up personal matters, including having a knee replacement that was scheduled for November.

However, according to Thursday’s court filing, Nocito’s wife broke her foot in October. Because he spent time at home caring for her, he spent less time than anticipated arranging his business affairs, the document said.

He similarly postponed having his knee replaced, the filing said.

Now, DiLucente wrote, Nocito is planning to delay the surgery until after his release from prison — unless the judge would reduce his sentence to house arrest.

If so, Nocito said he would serve it at a different, smaller residence.

Nocito’s motion also quotes a former associate warden at the prison where he is supposed to report who said that serving his sentence at a medical facility means that Nocito will be housed with low, medium and high security inmates, posing a safety risk to him.