When Joe Nocito built his 51,000-square-foot Bell Acres mansion he named Villa Noci, an IRS agent said Thursday, every check and payment he made on it was illegally expensed to one of his companies.

For the builder, nearly $900,000 in invoices between 2006 and 2012 were classified through Nocito’s companies as “consulting,” “subcontract labor,” “landscape,” and “repairs and maintenance.”

More than $128,000 in excavation costs were classified as “consulting” and “development expense.”

And nearly half-a-million for the swimming pool was listed as “consulting” or “repairs and maintenance.”

“Seemingly, every aspect of his life — gas for a car, food, gifts — all of that was illegally expensed,” testified Andrew Zurovcik, the lead IRS criminal investigator on the case.

On Thursday, federal prosecutors argued that Nocito, 81, should go to prison for his crime, which spanned several years and resulted in an expansive, multi-year investigation.

The defense has asked for house arrest.

Senior U.S. District Judge Joy Flowers Conti heard testimony and argument for about four hours Thursday, before recessing about 5:30 p.m.

The sentencing hearing will resume Monday at 10:30 a.m. when Nocito is expected to address the court.

The CEO and president of Automated Health Systems, a company that serves as a Medicaid enrollment brokering firm, Nocito pleaded guilty last November to one count of conspiracy to defraud the United States.

He has already paid $15 million in restitution.

He admitted to writing off millions of dollars in home construction costs and personal expenses without paying taxes.

The government has said that Nocito’s house is the largest in Pennsylvania. Allegheny County real estate records show it has 12 bedrooms, 13 full bathrooms, eight half-bathrooms and 22 fireplaces.

It was built through a sophisticated scheme, the government said.

Between 2006 and 2012, Nocito concealed more than $66 million in AHS income by funneling it through other companies he controlled.

He then used that income not only in the construction of what the government on Thursday called a palace, but also for a butler, a chef, luxury vehicles, tuition for his grandchildren, and other personal expenses.

It is, Assistant U.S. Attorney Greg Melucci said, the largest individual tax fraud in the history of the Western District of Pennsylvania.

As part of the plea deal, the parties agreed to an advisory guideline range of 37 to 46 months in prison.

Nocito, however, has asked that he be permitted to serve his sentence on house arrest at a home on Mount Washington that his attorney said measures about 2,500 square feet. Defense attorney Phil DiLucente said Nocito would not serve it at his estate.

On Thursday, DiLucente called nine witnesses who spoke extensively and lovingly about Nocito, his humble beginnings, his kindness and philanthropic endeavors.

The speakers, which included multiple members of the clergy, family members and co-workers, all described Nocito as a man who was generous not only to the causes he was dedicated to — like the Catholic Church and Robert Morris University — but even to strangers. He was known to learn about students at his alma mater who were facing financial struggles and then pay their tuition.

The Rev. Kris Stubna, who serves as the pastor of St. Paul Cathedral where Nocito is a member, told the court that his friend has served as an usher, raised money for scholarships in the community and is a man of faith.

“I believe the actions that led to us here do no exemplify his life,” Stubna said. “We are defined by a lifetime of actions and not just a few.”

DiLucente spoke extensively about his client’s generosity, arguing that his good works should make him eligible for a reduced sentence.

“Joe Nocito is the most unselfish man I have ever met in my life,” DiLucente said. “Joe doesn’t just give money. He gives his time.”

The defense argued that Nocito’s age, health problems and problems with mobility make prison untenable.

DiLucente and his witnesses also told the court that Nocito has suffered greatly since he was initially charged, including being a subject of media scrutiny, gossip and having his reputation damaged.

Nocito’s wife of 35 years, Judith Nocito, described him as optimistic, upbeat and resilient — someone who doesn’t dwell on disappointment.

“He makes me a better person,” she said.

But in recent years, Judith Nocito continued, the criminal case against her husband has taken a toll on him. He has become more reserved and subdued.

Judith Nocito said that her husband has admitted his crime and knows that consequences flow from that. Still, she continued, “any incarceration at his age is essentially a life sentence for both of us.”

She said that when her husband initially talked about building the house, he’d describe hosting spaghetti dinners and wanting a warm and welcoming home for their loved ones.

“He didn’t dream of building a large house for any reason other than hosting family,” she said.

DiLucente and several defense witnesses characterized Nocito’s actions as a mistake.

“What he did is a horrible mistake he’s going to pay for for the rest of his life on earth,” DiLucente said.

But Melucci, in his argument to the court, said it was more than that.

“It’s not just greed,” he said. “Unbridled ambition like we see here becomes evil. It inevitably causes the demise of somebody.”

Melucci told the judge that the defendant’s actions showed a lack of respect and contempt for the U.S. Treasury and its importance in American society.

While the prosecutor acknowledged that Nocito donated large amounts of money to charity, they weren’t a sacrifice for him. They didn’t impact Nocito’s lifestyle, Melucci said.

“It’s nice. He did it,” he continued. “But he’s a criminal. Just because someone commits generous acts doesn’t excuse crime.”

Melucci described the mansion — with floors of marble, maple, cherry, granite and travertine — and walls of Venetian plaster, cherry paneling and silk.

“It’s huge. It’s excessive. It’s conspicuous,” Melucci said. “You might say it’s gaudy.

“This is not a house. It’s a castle.

“Who paid for it? Everybody in this courtroom whose name isn’t Joseph W. Nocito.”

Copyright ©2025— Trib Total Media, LLC (TribLIVE.com)