A Pennsylvania businessman convicted earlier this year of a $15 million fraud involving a mega-mansion has asked for his prison sentence to be reduced.
Joseph Nocito, the former CEO and president of Pittsburgh-based Automated Health Systems (AHS) was sentenced to a year in prison for fraud in September.
The 81-year-old managed to illegally classify $15 million in personal expenses as deductible business expenses and finance the construction of a 50,000-foot mansion.
Nocito was allowed to remain free on bail after his conviction and is scheduled to report to the Federal Medical Center in Lexington, Kentucky, on January 22.
In a court file seen by Trib Livehas asked his lawyer to place Nocito under house arrest with electronic monitoring.
Joseph Nocito, pictured here, was sentenced to a year in prison for fraud in September
The 81-year-old managed to illegally classify $15 million in personal expenses as deductible business expenses and finance the construction of a mansion with a population of 51,000.
Nocito's proposal also included serving it in another, smaller residence, away from his lavish mansion where he previously employed a butler.
Attorney Philip DiLucente also asked District Judge Joy Flowers Conti to consider implementing new sentencing guidelines that will take effect in Nocito in February of next year.
The policy change provides a downward adjustment for suspects who have no criminal history, which would apply to his client.
DiLucente asked Conti to delay a report on Nocito until after February, when guidelines change.
In response to Nocito's request, the cabinet provided a brief response to the motion.
Assistant U.S. Attorney Greg Melucci wrote, “There is no legal or factual basis to delay the date of his self-report, and the United States intends to vigorously object to Defendant's request.”
Nocito was accused in 2018 of using $15 million in unpaid taxes between 2006 and 2012 to build the largest house in Pennsylvania.
The mansion, which he named 'Villa Noci', extends over 51,000 square meters and sits on 6.2 hectares of land, with 12 bedrooms, 13 bathrooms and 22 fireplaces.
Nocito falsified expenses, including construction costs, furnishings, an outdoor swimming pool and pool house, tennis, basketball and bocce courts, and landscaping.
He also spent millions of dollars on other personal expenses, including luxury vehicles, artwork, country club memberships, homes for his children and private school tuition for his grandchildren.
At his sentencing, Nocito told the court he had been suffering from health problems, including needing a knee replacement
Nocito was accused in 2018 of using $15 million in unpaid taxes between 2006 and 2012 to build the largest house in Pennsylvania.
The mansion, which he named 'Villa Noci', extends over 51,000 square meters and sits on 6.2 hectares of land, with 12 bedrooms, 13 bathrooms and 22 fireplaces.
The U.S. Attorney's Office said Nocito also underreported his company's profits and diverted millions in revenue through other entities.
Nocito also made recurring sham payments from his company to others he owned and categorized the transactions as expenses before deducting the costs on his corporate tax returns.
In total, the tax loss due to incorrectly declaring operating expenses was approximately $4 million, while there was a further $11 million loss due to underreporting of profits.
Nocito pleaded guilty last November to conspiracy to defraud the US and has already paid $15 million in restitution.
Despite requesting to be housed, he was sentenced to serve a year behind bars, followed by another three years of probation.
At his sentencing, Nocito told the court he had been suffering from health problems, including needing a knee replacement.
The U.S. Attorney's Office said Nocito also underreported his company's profits and diverted millions in revenue through other entities.
Nocito pleaded guilty last November to conspiracy to defraud the US and has already paid $15 million in restitution
According to the lawsuit earlier this week, his wife also broke her foot in October and has been caring for her.
Nocito plans to postpone surgery on his knee until after his release from prison.
His son, Joseph Nocito Jr., had previously pleaded guilty to two counts of conspiracy to commit bank fraud and filing a false income tax form, and was sentenced to 16 months in prison in February 2016.
Nocito's personal assistant Ann Harris also pleaded guilty to tax fraud in 2015, admitting to helping him avoid more than $4 million.
Harris struck a plea deal with prosecutors to help investigate her former boss.