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03/03/2010

News / Norristown Man Charged in Multi-Million-Dollar Fraud Case

Michael G. Spada was charged yesterday by information with wire fraud, bank fraud, filing a false tax return, and making a false statement to the federal government in a fraud case involving more than $6 million, announced United States Attorney Michael L. Levy.

Spada is accused of embezzling more than $6 million from his former employer and hiding that embezzlement from both a bank, that extended him a $3.2 million line of credit, and from the Internal Revenue Service. According to the information, Spada is a former controller and chief financial officer of Scannapieco Development Corporation and related companies. The information alleges that Spada embezzled the funds by diverting company checks to his own account and taking more than $400,000 in unauthorized salary between 2000 and 2009.

Spada failed to report most of the embezzled money on his tax returns and lied to IRS agents about his embezzlement during a meeting on June 22, 2009.

INFORMATION REGARDING THE DEFENDANT

NAME ADDRESS AGE OR YEAR OF BIRTH
Michael G. Spada Norristown, PA 50

If convicted the defendant faces a maximum possible sentence of 60 years' imprisonment, a $1,750,000 fine, three years of supervised release, and a $400 statutory assessment. He also could be ordered to pay more than $6 million in restitution and to forfeit proceeds from his crimes.

The case was investigated by the FBI and the IRS and is being prosecuted by Assistant United States Attorney Mark B. Dubnoff.

http://philadelphia.fbi.gov/dojpressrel/pressrel10/ph030210.htm

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